Manitoba Mining – Page 17 – Republic of Mining

The Northern Miner’s 2012 Mining Person of the Year: Garofalo a steady hand on the Hudbay tiller – by John Cumming (Northern Miner – December 19, 2012)

December 19, 2012

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

In these times of economic and political turmoil, boring has become the new exciting.

With mining companies of all stripes running aground on the shoals of cost overruns, nationalization movements and environmental opposition, any executive that manages to guide a company to fiscal health, sustainable growth and positive community relations stands head and shoulders above his peers. And so this year, Hudbay Minerals president and CEO David Garofalo is our Mining Person of the Year for his fine job in making Hudbay a standout success story amid the dwindling list of mid-tier base metal miners.

Garofalo is a accountant by training, with a B.Comm. from the University of Toronto and a Chartered Accountant designation. He started out in 1990 as treasurer of Inmet Mining before joining Agnico-Eagle Mines in 1998 and becoming CFO in 1999. That was back when it only had one gold mine — the pre-expansion LaRonde in Quebec’s Abitibi region — and penny pinching was the order of the day, as gold traded for just US$250 per oz.

Garofalo helped Agnico nail down financings that allowed the company to grow prudently through mine expansions and asset purchases, without having to hedge production in a rising gold environment. In 2009, a year in which Agnico raised about a billion dollars, Garofalo won the award for “Canada’s CFO of the Year,” an honour that’s usually handed out to CFOs from much larger and more established Canadian companies.

[Manitoba] Province has ‘significant concerns about Vale’s commitment to the Thompson mining operations’ – by John Barker (Thompson Citizen – October 22, 2012)

October 22, 2012

The Thompson Citizen, which was established in June 1960, 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. editor@thompsoncitizen.net

Urgent meeting with Poppinga

The provincial government has ‘significant concerns about Vale’s commitment to the Thompson mining operations’ and says it will be meeting on an urgent basis with Vale Canada President Peter Poppinga to discuss issues relating to Thompson, Steve Ashton, Thompson’s NDP MLA and minister of infrastructure and transportation, said Oct. 22.

“Following meetings with Murilo Ferreira, the CEO of Vale in 2011, and a further meeting between the Premier (Greg Selinger) and the CEO in Brazil in May 2012 we have been engaged in discussions with Vale in relation to the fund and other issues regarding the Thompson operation,” Ashton said. “We have made it clear that the Province of Manitoba is committed to continue working for value added jobs from the nickel resource in Manitoba.

“There was progress on these discussions. However the recent announcement on Birchtree and the delay in a decision on the 1 D project has raised significant concerns about Vale’s commitment to the Thompson mining operations.

Vale wields Sword of Damocles over [Thompson, Manitoba] Birchtree Mine – by John Barker (Thompson Citizen – October 19, 2012)

October 19, 2012

‘Birchtree Mine is being considered for care and maintenance, effective August 2013’

Birchtree Mine, which opened in 1968, is being “considered for care and maintenance” in 10 months time next August, Vale said Oct. 18. The mine was previously on care and maintenance from 1977 to 1989.

“Unless we are able to affect another outcome, operations will be suspended at Birchtree Mine as of August 2013. This will mean that by the end of 2012 there will be no further development of the mine and it will be gradually ramped down until August when it will be placed on standby. The mine may re-open depending on future nickel prices, market dynamics and the viability of doing so. Previously, Birchtree Mine was on standby for nearly 12 years before re-opening in 1989 and the current life of mine plan anticipated closure at some point in the next 10 years.”

The bad news was delivered in a follow-up letter to Manitoba Operations employees in Thompson to an earlier one issued Sept. 7 by Lovro Paulic, general manager of smelting and refining, Don Wood, general manager of production services and Mark Scott, general manager of mining and milling. The three most senior managers in Manitoba Operations also issued the Oct. 18 letter jointly.

Why the metal industry is getting harder – by By David Garofalo (Canadian Business Magazine – September 20, 2012)

September 25, 2012September 24, 2012

http://www.canadianbusiness.com/

David Garofalo is the President and CEO of HudBay Minerals Inc.

The recent conflicts at mines in developing nations—the violence erupting in South Africa, Guatemala, Panama and elsewhere this summer—are unsettling and deplorable. Yet they illustrate the new context for mining companies around the world, which often goes unexplored in mainstream coverage.

The new reality of the global mining industry is that most of the large, high-grade mine operations located in favourable jurisdictions are getting long in the tooth. As production at these mines inevitably declines with time, mining companies are forced to look farther afield for new supply. Since all of the near surface high-grade deposits have been discovered, companies are now looking at more geologically challenging deposits, usually with lower-grade ore. Often, this means considering development opportunities in areas that are not only more complex geologically, but also carry more social and political risks.

Among other things, this explains the chronic deficit in copper supply the world has experienced over the past four years. Average copper production grades have fallen dramatically over the past decade. Simply to maintain output, companies have to process much higher tonnages in order to sustain consistent production. Increased demand from developing economies has created a supply crisis—the term is not too strong.

Good news: Vale’s Thompson smelter and refinery may stay open a year or two beyond 2015 – by John Barker (Thompson Citizen – Septmeber 7, 2012)

September 13, 2012September 8, 2012

Peter Poppinga, who less than a year ago replaced Tito Martins in Toronto as chief executive officer of Vale Canada and became executive director of base metals globally for Brazilian-based mining giant Vale, told company managers Sept. 6 “that every aspect of the base metals business is under review, including our Manitoba Operations, and we may face new challenges and new opportunities in the coming months as a result,” Lovro Paulic, general manager of smelting and refining, Don Wood, general manager of production services and Mark Scott, general manager of mining and milling, said in a jointly-issued letter from the three most senior managers in Manitoba Operations to employees here Sept. 7.

“The most pressing and immediate challenge before us is to reduce costs and increase efficiencies while continuing to strive for Zero Harm—these are complementary,” the trio said.

United Steelworkers Local 6166 President Murray Nychyporuk, elected to his second three-year term last spring, says the “news is not surprising” and the union recognizes the world nickel market has taken a serious downturn over the last year and Vale has to find a way to cut costs. Nychyporuk said the union would work with the company during the review process to protect their common interests.

Manitoba HudBay’s] Lalor mine stealing thunder of other site – by Martin Cash (Winnipeg Free Press – August 23, 2012)

August 23, 2012

http://www.winnipegfreepress.com/

There’s no doubt the big story in mining in Manitoba these days is HudBay’s Lalor project near Snow Lake. Weighing in at about $700 million, the zinc/copper/gold mine is shaking up the economic landscape in the region.

But just down the road and almost below the radar, HudBay is also in the process of building another new mine in northern Manitoba at Reed Lake in the Grass River Provincial Park, about 110 kilometres east of Flin Flon at Reed Lake, about 100 metres off Highway 39.

It’s the first time in the modern history of mining in Manitoba dating back to the 1930s when two new mines are under construction at the same time in Manitoba. And were it not for the scale and size of Lalor, the Reed Lake copper mine — which is going to cost about $70 million — would be much bigger news.

A joint venture with the exploration company VMS Ventures (HudBay owns 70 per cent and VMS has 30 per cent), the mine came to fruition at almost lightning speed compared to the typical timelines for such an enterprise.

HudBay Minerals eyes further growth in Peru – by Euan Rocha (Reuters.com – April 10, 2012)

April 11, 2012

http://uk.reuters.com/

HudBay seeks to replicate its Manitoba model in Peru

TORONTO, April 10 (Reuters) – Base metals miner HudBay Minerals is looking at expanding its asset base in Peru as it seeks to create a new hub that will replicate the successes enjoyed at its mines in the Canadian province of Manitoba, the company’s top executive says.

HudBay, which traces its roots back more than 80 years to the Flin Flon mine in northern Manitoba, has used much of the infrastructure developed at Flin Flon for decades, moving gradually from one deposit to the next.

“We are trying to do the same thing in Peru,” said HudBay Chief Executive David Garofalo. “We are building a large 70,000 to 80,000 tonne a day concentrator there and we’ve tied up about 22,000 hectares of real estate along the trend and we’re looking to tie up more.

Vale announces operations transition plan [for Thompson, Manitoba] – by Matt Durnan (Thompson Citizen – March 7, 2012)

March 8, 2012

Vale Manitoba Operations general manager Lovro Paulic spoke at the Thompson Chamber of Commerce on Feb. 29 to announce the company’s plans for 2012 and moving forward towards 2015.

The mining company will shut down it’s smelter and refinery operations in 2015 and, as a result are working on a transition plan to minimize layoffs as well as operate with fewer assets.

“Our goal this year is to produce 108 million pounds of nickel,” said Paulic, one of three general managers here. “We’ve already begun the process of converting to a single furnace operation. The plan was to produce 108 million pounds (of nickel) using two furnaces and five converters, but we’re going to attempt to do it using one furnace and two converters.”

Manitoba starts $3-billion permanent road network (Canadian Consulting Engineer – February 27, 2012)

February 28, 2012

http://www.canadianconsultingengineer.com/

First Nations communities along the east side of Lake Winnipeg in Manitoba are being connected by permanent roads to the provincial road system for the first time.

The Government of Manitoba’s East Side Road Authority has started construction of roads and bridges along the all-season network, which altogether is estimated to cost approximately $3 billion and once completed will cover 1,028 kilometres. The overall project will take up to 30 years to complete.

SNC-Lavalin established the routes in a two-year long study, known as the Large Area Transportation Network Study, which was officially released in June 2011. Now, AECOM is the prime consulting engineering firm implementing the project, and Dillon Consulting is the contract administrator. Both companies are working on the road and bridge works.

Last week, Manitoba Premier Greg Selinger visited Manto Sipi Cree Nation near Gods River to see first-hand how work is progressing. A series of new permanent and some temporary bridges is under way and Chief Michael Yellowback said the communities are already benefiting, since warming temperatures had put the current winter roads in jeopardy.

Our national shame [Aboriginal living conditions] – by Mia Rabson and Mary Agnes Welch (Winnipeg Free Press – February 4, 2012)

February 4, 2012

This article came from: http://www.winnipegfreepress.com/

Natural resources may transform northern Manitoba reserves from poverty-stricken to prosperous. Human resources may transform First Nations from have-nots to self-sufficient

No boat trip in Manitoba is prettier than the one between Garden Hill and St. Theresa Point, dodging dozens of tiny, pincushion islands made of bedrock and pine trees.

The Island Lake region should be a quintessentially Canadian jackpot of mining, logging, hydro development and high-end tourism catering to eco-adventurers and rich American sport fishermen. Instead, it’s a national shame.

There appears to be only one thing that will make reserves in northern Manitoba viable communities able to rise above the poverty that’s shackled generations: natural resources.

At the recent Crown-First Nations Gathering in Ottawa, chiefs had education, health care and housing on the brain. But the one resounding theme was a desire to get Ottawa and the provinces to the table so First Nations can finally start reaping the benefits of the natural resources they believe are bountiful on their traditional lands.

[Manitoba] Province mining bright future – by Martin Cash (Winnipeg Free Press – November 19, 2011)

November 19, 2011

http://www.winnipegfreepress.com/

Many projects could start up in next few years

In the next five years the mining industry in Manitoba could find itself in a challenging position — trying to find people to fill 2,000 additional jobs that might be created. That’s because a number of development projects that have been percolating for years may be coming to fruition.

With employment up almost 25 per cent over the past five years to 6,100 and capital spending up 25 per cent in the past year, the industry is booming. Base metal prices continue to hold their own and gold prices continue to rise as global economic uncertainty persists.

It means that a number of projects — some that could be among the largest ever developed in the province — continue to progress, creating the potential for several new mine openings over the next few years. It will take billions of dollars to make that a reality, which means it’s far from a foregone conclusion.

But the current optimism — manifested by registration numbers at this week’s annual Manitoba Mining and Minerals Convention hitting 1,000 for the first time ever — does not come out of the blue. Typically, new mines take up to 10 years to develop. Leading off the development bonanza in Manitoba is one of the fastest discovery-to-development projects in the country — HudBay Minerals’ Lalor project.

Republic Of Mining named to ‘Top 10 Mining Blogs’ list by Australian guide – by John Barker (Thompson Citizen – November 1, 2011)

November 2, 2011

Mining IQ, a Sydney, Australia-based mining guide and international learning and communications portal, which is a division of International Quality & Productivity Center (IQPC), has named Republic Of Mining (http://republicofmining.com) to its list of “Top 10 Mining Blogs,” one of only two Canadian sites to be included.

In 1973, the publishers of Industry Week magazine co-founded a company called Penton Learning Systems, which managed a consortium of more than 100 colleges and universities and assisted in the design and development of over 30,000 short courses and seminars in the fields of quality management, project management, finance and accounting, marketing management, strategic planning and implementation. IQPC was founded in 1989 and is still owned by Penton Learning Systems of Little Falls, New Jersey.

Republic of Mining is published by Stan Sudol, a Toronto-based journalist, communications consultant, mining strategist and speechwriter. Sudol picks up Thompson Citizen and Nickel Belt News mining stories, editorials and photos, with our permission, from time to time, usually about Vale’s Manitoba Operations.

Truth time on Thompson, Manitoba smelter and refinery – Editorial (Thompson Citizen – October 26, 2011)

October 28, 2011

It’s time for all the parties or stakeholders to tell the truth about Vale’s plan, announced almost a year ago, to close the Thompson refinery and smelter in 2015. And the truth is the smelter and refinery is closing. Vale has been consistent in their position on this since the day they made the bombshell announcement last Nov. 17.

You don’t have to like that piece of bad news delivered by Tito Martins, chief executive officer of Vale Canada in Toronto and executive director of base metals for the Brazilian parent company, or for that matter you don’t have to like Martins’ direct style or Martins’ himself even. That’s OK.

But you have to give credit where credit is due and Tito Martins has been nothing but a straight shooter on the company’s position on closing the smelter and refinery. He’s told people involved privately what he’s said publicly. And just in case anyone didn’t get the message Nov. 17, 2010 he reiterated it in person Jan. 26 at the Juniper Centre at the Thompson Chamber of Commerce annual general meeting.

Thompson, Manitoba USW Local 6166 and Vale reach tentative deal- by John Barker (Thompson Citizen – September 12, 2011)

September 12, 2011

Ratifcation vote Sept. 15

USW Local 6166 and Vale’s Manitoba Operations have reached a tentative agreement three days before the current three-year collective is due to expire Sept. 15, says Ryan Land, manager of corporate affairs for Vale’s Manitoba Operations, and Murray Nychyporuk, president of USW Local 6166, in a joint press release issued Monday.

The USW will be holding two meetings today with its members to present the offer and “express its unanimous support of the proposed Offer of Settlement,” says Nychyporuk and Land.

Members will have two days to review and consider the offer. The ratification vote will take place Thursday, Sept. 15, beginning at 8:30 a.m.

If ratified the deal in Thompson will break a pattern of two long and bitter labour disputes, both now resolved, in Sudbury and Voisey’s Bay. After almost a year on the picket line between July 2009 and July 2010, striking Steelworkers at Local 6500 in Sudbury and Local 6200 in Port Colborne, Ont. voted about 75 per cent to ratify a five-year deal with Vale, four days short of a year of going on strike.

USW schedules final offer meeting, but talks continue – by John Barker (Thompson Citizen – September 1, 2011)

September 5, 2011

Nychyporuk says ‘both sides still have intentions of reaching a deal’

USW Local 6166 has scheduled a “final offer” presentation from Vale Sept. 12, but talks continue.

“Vale hasn’t made a final offer, we posted dates just to inform our members when the offer will be … We are currently starting the monetary process and both sides still have intentions of reaching a deal,” Local 6166 President Murray Nychyporuk said Friday night.

The union will present a final offer to the membership Sept. 12 between 8:30 a.m. and 8:30 p.m. at the Royal Canadian Legion – four days after the union holds a strike mandate vote Sept. 8 at the Steel Centre. The 13-hour strike vote will be held between 7:30 a.m. and 8:30 p.m.

Seeking a strike mandate at this point in contact talks is an important but fairly routine part of the collective bargaining process, aimed at giving the union negotiating committee the strongest hand possible while talks go down to the wire, but not necessarily indicating one way or the other the likelihood of an actual strike.