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.
VANCOUVER— The world’s top gold miners are forging ahead with expansion plans and higher dividend payments, despite worries that bullion is bound for a correction after a spectacular runup beyond $1,900 (U.S.) an ounce earlier this month.
The companies are vowing to tackle the issue of share values that lag gold prices through aggressive growth plans, rising margins and sweetened dividends, despite the challenges of rising costs and increased competition for investors.
Executives believe that the price of gold will continue to rise and that equities will soon catch up and could even surpass physical gold in returns to investors.
“I do think the equities will respond,” Barrick Gold Corp.chief executive office Aaron Regent told investors at the Denver Gold Show in Colorado Springs, Colo., on Monday. “The equities have not reflected the strong fundamentals of the underlying businesses.”
Indigenous peoples often have historical and cultural ties to land endowed with important natural resources. To unlock the value of these resources for the benefit of everyone involved, responsible mining companies must understand and address a range of unique challenges and opportunities.
Barrick works constructively with indigenous peoples around the world. In North America, although Native peoples may have different cultural traditions, the challenges they face and their partnerships with Barrick often have striking similarities.
Alaska
The Donlin Gold project in Alaska is a large, undeveloped gold deposit, approximately 450 kilometers northwest of Anchorage. Barrick has a 50 per cent interest in the project; NovaGold owns the remaining 50 per cent stake.
There are nearly 70 distinct communities near the Donlin project site and along the route of a proposed natural gas pipeline that would supply power to the mine. These communities need to be addressed as individual cultural and indigenous entities.
THE LIBERALS had to know this was coming. Yet they went ahead in spite of the downside, apparently preferring it to having party leaders debate Northern Ontario issues in Thunder Bay where the Liberals hold both seats. The political blowback is coming hard and fast, and with seven days to go it can only get worse.
Last month, three key regional organizations formally confirmed an invitation to provincial party leaders to debate northern issues at a conference here Sept. 23, in the midst of the provincial election campaign.
The Northwestern Ontario Regional Conference is hosted by the Northwestern Ontario Municipal Association (NOMA), the Northwestern Ontario Associated Chambers of Commerce (NOACC) and the Northwestern Ontario Development Network (NODN). It brings together municipal, business and economic development leaders from across the Northwest.
Company History: (Please Note that Placer Dome was taken over by Barrick Gold in 2006)
Placer Dome Inc., the fifth largest gold mining company in the world, produces approximately 3.5 million ounces of gold annually. Based in Vancouver, British Columbia, the company also mines silver and copper and has interests in 18 mines, many outside of Canada, in countries including South Africa, Australia, the United States, and Papua New Guinea. A leader in mine exploration, Placer Dome spent about $60 million in 2003 on exploration.
The Creation of a New Company
Placer Dome Inc. was formed in 1987 by the amalgamation of three Canadian mining companies, creating the largest gold producer in North America with an annual output of more than 800,000 ounces of gold. Dome Mines Limited, the oldest of the three predecessors and one of Canada’s most venerable gold producers, was incorporated in 1910, following the discovery of the Dome Mine, a hard-rock mine in northern Ontario, which was still producing gold in 1997. The mine and the company got their name from the shape of the gold-studded rock structure a band of prospectors literally stumbled over in 1909.
Placer Development Limited was incorporated in British Columbia in 1926 and made its first earnings during the 1930s, dredging gold from the gravel of a river in Papua New Guinea, then under Australian mandate. “Placer,” which was Spanish for shoal, referred to water-borne deposits of sand or gravel containing particles of gold or silver. Mining that deposit was no easy task.
This article was provided by the Ontario Mining Association(OMA), an organization that was established in 1920 to represent the mining industry of the province
Ontario Mining Association member Osisko Mining Corporation is reaching out to incorporate Traditional Knowledge into the Environmental Assessment of its Hammond Reef gold property in Northwestern Ontario. The company recently held an Elders Forum on site. More than 65 Elders from neighbouring First Nations, company staff and government officials participated. Nine First Nations communities were represented at the Forum.
Chiefs and councils of these First Nations made hearing from the Elders about this project a main concern. Elders, while not always the most senior residents of First Nations communities, are generally respected for their wisdom, patience and understanding. They value traditional teachings and passing them along to younger generations.
“The Elders Forum provided us with a unique opportunity to approach the Environmental Assessment process from a Traditional Knowledge perspective,” said Peter Hinz, Mineral Development Consultant with the Ministry of Northern Development Mines and Forestry. “This was an excellent opportunity to facilitate an open exchange of information and perspectives between First Nations, industry and government.”
Two years and two risky deals later, Barrick’s CEO Aaron Regent has shown the mining community that he’s one leader not afraid of taking chances
When Aaron Regent, the president and CEO of Barrick Gold Corp., addressed the annual general meeting of the world’s largest gold producer in April, he had a lot of good news to bestow.
In a matter-of-fact tone, the 45-year-old CA, who had been appointed to the challenging role some 27 months earlier, began by telling the assembled shareholders at Toronto’s Metro Convention Centre that Barrick had “a strong year in 2010.” That was an understatement. The price of gold had surged to US$1,228 an ounce last year, up 25% from the year before and more than 200% since 2004.
In May it was nudging US$1,512 on the New York Stock Exchange and in June reached US$1,540 an ounce. Those numbers contributed significantly to Barrick, which has 25 operating mines and six projects on five continents, being able to report record adjusted first-quarter net earnings in 2011 of US$1.1 billion, up 32% from the prior year’s same period. Operating cash flow also jumped, by 27% from the previous first quarter, to US$1.44 billion.
TORONTO, ONTARIO–(Marketwire – Sept. 7, 2011) – Probe Mines Limited (TSX VENTURE:PRB) (“Probe” or the “Company”) is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) with the Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nations communities near Chapleau, Ontario. The MOU establishes a commitment by Probe to develop an ongoing relationship with the three communities in the area of the Company’s Borden Lake Gold Project and provides the communities with an opportunity to participate in the benefits of the project through training, ongoing communication and business development.
An Elders Committee (the “Committee”) will be created to provide advice to the Company on traditional values and local cultural and environmental matters during the exploration phase. Probe has also agreed to negotiate an Impact Benefit Agreement with the communities should the project proceed to production.
David Palmer, President of Probe, states “The signing of the MOU is an important first step in building a relationship based on mutual respect and cooperation with the First Nations communities. We are looking forward to working with the communities and receiving their input as we explore the Borden Lake area. Their contribution of local knowledge will be invaluable in helping us create a socially responsible exploration program to the benefit of all involved.”
This article was provided by the Ontario Mining Association(OMA), an organization that was established in 1920 to represent the mining industry of the province.
One of the largest hotel and food service operations in Ontario right now is not a resort, or hotel, or casino, it is the Detour Lake mine site located 185 kilometres north and east of Cochrane. Detour Gold is investing $1.3 billion to bring this open-pit gold project into production by early 2013. Once in operation, it will be Canada’s largest gold mine.
Access to the mine site from Cochrane is by a provincial two-lane highway and a private company road. The road trip from Cochrane takes about two and one half hours and crosses several major rivers flowing into the Arctic watershed. The mine is near the Quebec border and about 100 kilometres south of James Bay.
On any given day at the moment, there could be 1,000 people, or more, on site from Detour Gold and at least 15 contracting companies. It is a beehive of activity requiring military precision and logistics to feed and house the workers let alone bring in materials to build the mine infrastructure including the processing plant facilities and tailings areas.
The New York Times has the third highest weekday circulation in the United States (after USA Today and the Wall Street Journal) and is one of the country’s most influential newspapers.
SYDNEY, Australia — Four years ago, Marco Nero was on top of the world. He was earning more than $1 million working as a film effects designer for some of the world’s most prestigious digital animation houses. His mind, however, was elsewhere.
Mr. Nero, 40, was increasingly spending his office hours poring over Web sites for anything he could find about an unlikely subject: gold. Like Humphrey Bogart’s character in the classic 1948 film “The Treasure of the Sierra Madre,” he realizes now, he was developing a full-blown case of gold fever, a condition whose genesis he traces to a trip to a prospecting supply shop in the Sydney area.
“I happened to talk to the gentleman that was behind the counter, and he showed me a 2-ounce gold nugget he had and it was a beautiful piece. I held that in my hand,” he said. “I was probably hooked at that point.”
Shortly thereafter, despite protests from friends and family, he quit his job to hunt for gold.
Historically, Ontario’s gold mining industry has played a major role in the settlement of the province’s northern regions and along with the Cobalt silver boom and further gold and base metal discoveries in northwestern Quebec were primarily responsible for the establishment of Toronto as today’s mine financing capital of the world.
The many gold mines that came into production during the Depression of the 1930s made a vital contribution to keeping the province solvent and with over a century of experience building many underground mines helped solidify Ontario’s hard-rock mining expertise that is well respected globally.
However, northern Ontario’s gold rushes have always seemed to play second-fiddle to the legendary Klondike in the Yukon, aided by famous writers like Jack London, Robert W. Service – of the Cremation of Sam McGee fame – and Canadian literary icon, Pierre Berton. At it’s peak, the Klondike gold rush only lasted for a few years – 1896-99 – and produced a miserly 12.5 million ounces of gold. “Chump change” compared to northern Ontario’s four major gold rushes and a number of smaller gold districts, most of which are still producing the precious metal today.
A fever is spreading throughout northern Ontario, from the eastern districts adjacent Quebec to the far reaches of the northwest right up to the Manitoba border. This raging malaise is caused by a metal that has captured mankind’s attention from the dawn of time. I am referring to “gold fever” and many in northern Ontario – a vast northern territory, which is almost equal to Germany, United Kingdon, Greece and Ireland combined – are thoroughly infected or obsessed over this beautiful precious metal.
Historically, Ontario’s gold mining industry has played a major role in the settlement of the province’s northern regions and along with the Cobalt silver boom and further gold and base metal discoveries in northwestern Quebec were primarily responsible for the establishment of Toronto as today’s mine financing capital of the world.
The many gold mines that came into production during the Depression of the 1930s made a vital contribution to keeping the province solvent and with over a century of experience building many underground mines helped solidify Ontario’s hard-rock mining expertise that is well respected globally.
However, northern Ontario’s gold rushes have always seemed to play second-fiddle to the legendary Klondike in the Yukon, aided by famous writers like Jack London, Robert W. Service – of the Cremation of Sam McGee fame – and Canadian literary icon, Pierre Berton. At it’s peak, the Klondike gold rush only lasted for a few years – 1896-99 – and produced a miserly 12.5 million ounces of gold. “Chump change” compared to northern Ontario’s four major gold rushes and a number of smaller gold districts, most of which are still producing the precious metal today.
Considering the record setting price of gold, moving upwards almost daily, the political stability of northern Ontario and its strong world-class mining infrastructure versus lesser developed countries like Tanzania, Guatemala or Papua New Guinea, exploration in all current and former gold mining camps is booming.
Barrick Gold Corporation is an anomaly in the gold exploration and mining industry; it has little debt and low-cost production, yet high yield and even higher sales. Though Barrick began as a less than spectacular petroleum and oil company in Canada founded by Peter Munk and David Gilmour, they turned to prospecting in 1983 and became the quintessential success story. While gold mining operations may spend decades searching for the motherlode, Barrick began by acquiring established mines and bringing them to new levels of productivity and profit.
On its Goldstrike Property on the Carlin Trend in Nevada, Barrick has established the Betze-Post and Meikle Mines: the former is the richest and most productive mine in the United States while the latter is the largest underground mine in North America. Ongoing exploration and drilling continue in the region, as well as on properties in Canada, South America, and Africa, with projections to reach more than five million ounces of gold production by 2003. Since Barrick’s mining and processing facilities are among the most technologically advanced in the world, this is all but a fait accompli.
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 often speak of having a “social licence” to operate. This reflects the willingness of local communities to support their endeavours. The more the miner and the indigenous people talk, the better their understanding and ability to accommodate one another.
What sounds straightforward is often complicated by unrealistic expectations, earlier history, cultural rigidity and interference by third parties.
The latest company on the verge of losing its social licence is Vancouver’s Goldcorp, that operates the Marlin gold mine in Guatemala. The most recent report to examine Goldcorp’s record there was commissioned by the company in response to charges of human rights violations at the Marlin mine. The report concluded that the company had failed to respect the right of indigenous peoples in that country, but also had brought jobs, healthcare and education to the impoverished western highlands region. Goldcorp further insists that allegations of environmental problems are unfounded.
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.
It is difficult to overstate the importance of gold. It has been prized as decoration as long as humankind has been around. It makes a solid foundation for world banking. It has been fought over. It is the stuff of which legends are made. And gold is undeniably beautiful.
Most of the general public and the mineral industry snap to attention when gold is in the news. Reports of new gold finds are especially welcome. But they may be fewer and farther apart if the findings of Halifax’s Metals Economics Group (MEG) are accurate. (www.MetalsEconomics.com)
MEG examined the costs of finding and acquiring gold reserves and found that overall the industry is not discovering new deposits fast enough to meet future production demand.
The report looked closely at major gold producers, those with an output of 450,000 oz or more in 2008. They overcame “… rising costs, equipment and labour shortages, electrical outages, wars, permitting hurdles, typhoons, political opposition, and other obstacles,” the report noted to replace reserves at twice the rate they are mining them. Most of these gains were made through acquisitions or upgrading existing resources due to the high gold price, not through grassroots discoveries.
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 first gold mine in Kirkland Lake, ON, is reopening this summer, not as a producer but as a monument to the early days of prospecting in Ontario’s North. The hunt for gold was filled with characters — “Swift” Burnside, the Tough brothers, Sir Harry Oakes and Bill Wright — all eager to make a profit on the next great gold mine. Part of their legacy is the headframe of the Toburn mine that began commercial production in 1913.
The Toburn mine struggled along with a 90-t/d stamp mill from 1913 to 1931. Then Toburn Gold Mines Ltd. was incorporated and installed a new, larger mill, which operated until 1953. A total of 1.1 million tonnes of ore grading almost 17.0 g/t Au (0.5 opt) was treated.
The site was abandoned after mining ceased and reverted to the Crown. In 2006 the Northern Prospectors Association set about acquiring the last remaining original headframe on the “Mile of Gold”. Project funding was contributed by individuals, corporations and public institutions. Two years later, the Town of Kirkland Lake acquired the property and the Toburn Operating Authority was created to oversee its rebirth as a tourist and learning destination.
