Productivity most critical mining issue – by Douglas Morrison (Northern Ontario Business – November 5, 2015)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Douglas Morrison is the President and CEO of the Sudbury-based Centre for Excellence in Mining Innovation (CEMI) and network director, Ultra-Deep Mining Network.

Of the five important issues the mining industry in Canada needs to address (demographics, mine productivity, environmental performance, exploration, and remote mine development) the most critical is productivity.

Nationally, the decline in productivity is common in every sector of the economy. Equipment gets older and needs more maintenance, or customers relocate and delivery costs increase.

In mining, operations get deeper, hotter, technically more difficult and logistically more complex, and every day these factors erode mine productivity.

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Residents deserve answers about Vale runoff – by Naomi Grant and Lilly Noble (Sudbury Star – November 13, 2015)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

What’s your reaction when you see your neighbourhood playground in the news in relation to contaminated runoff?

“We just moved in August from three houses down from the site. Kids played there all the time. A little pissed off right now that nobody alerted us to the problem.”

“I lived near there for 20 years … They knew all that time and didn’t inform any-one. Our kids played at that park since it was built.”

“Who is going to test my soil? Who is going to give us answers?” These are a few of the comments posted by residents in response to the news that Vale runoff saturated a school board property in the west end, the site of Travers playground, for years.

Residents have received no information from regulatory agencies, authorities or Vale. Let’s look at the information available so far.

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[Ontario] Open the north; get on with it – Editorial (Thunder Bay Chronicle-Journal – November 12, 2015)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Ontario has just completed the fourth Northern Leaders Dialogue. Provincial, municipal and indigenous leaders gathered in Thunder Bay to discuss issues around development and transportation, part of the province’s growth plan for Northern Ontario.

The advent of exploration around the rich Ring of Fire mineral belt has added urgency to the notion of opening the North. Yet there remains much indecision on whether transportation should be rail or road, east-west or north-south. Who should pay what share of the cost? While Ontario spins its wheels, what are neighbouring provinces and other jurisdictions doing?

In Quebec, 950 kilometres north of Quebec City, Stornoway Diamond Corp. invested $800 million in capital expenditures in the province’s first diamond mine. To provide year-round access, the province and Stornoway split the cost of building a 243-kilometre road serving one of 35 mines that the Quebec government estimates will be operating by 2020.

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Green light for Goldfields to start up Taylor mine – by Alan S. Hale (Timmins Daily Press – November 11, 2015)

The Daily Press is the city of Timmins broadsheet newspaper.

BLACK RIVER-MATHESON – St. Andrew Goldfields has received approval from the provincial government to begin commercial production at the Taylor Mine, located 53 kilometres east of Timmins.

The project’s closure plan received final approval from the mining project from the Ministry of Northern Development and Mines last week.

“We are pleased to declare Taylor the newest mine in Ontario, one which we anticipate will bolster the company’s gold production profile for 2016 by 40,000 to 50,000 ounces and provide much-needed jobs and economic benefits to the communities of the region,” said Duncan Middlemiss, the president and chief executive officer of St. Andrew Goldfields in a statement.

“The mine is expected to be a significant contributor in the future as we are ramping up to full production by the end of this year.”

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New Canadian government unlikely to push mining CSR legislation immediately, MP says – by Jax Jacobsen (SNL.com – November 10, 2015)

https://www.snl.com/

The new Liberal government under Justin Trudeau likely will not get around to legislation overseeing Canadian mining companies’ overseas projects in the near future, Liberal MP for Scarborough-Guildwood John McKay told SNL Metals & Mining on Nov. 9.

McKay has been on the forefront of this type of legislation, and previously tabled Bill C-300, which was defeated by a Conservative parliament in 2010.

“It was referenced during the election,” McKay said. “I don’t think it’s the highest priority this government has, as it didn’t form any part of the platform.”

The original bill would have required mining firms which operate abroad and which receive support from the Canadian government to uphold human rights and environmental standards. Companies which would be found violating these standards would be reported to Export Development Canada, which provides financial assistance for Canadian firms operating internationally, as well as the Canada Pension Plan Investment Board.

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[Ring of Fire] Access road priority: MP – by Carl Clutchey (Thunder Bay Chronicle-Journal – November 7, 2015)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

No “trained seal” this guy. Though he didn’t make it into Prime Minister Justin Trudeau’s first cabinet, veteran Liberal MP Bob Nault said he’s confident a promised open style of government will allow him to make the case for pressing Northern issues, including a main access road into the Ring of Fire mining belt.

“You don’t have to be in cabinet to be effective in this job,” Nault (Kenora) said Friday. “We’re moving to a system where the roles of (backbench) MPs and Parliamentary committees are going to be strengthened.”
Chuckling, Nault added: “We don’t have to sit there like trained seals,” a reference to how Justin’s father, Pierre Trudeau, once viewed backbenchers.

Nault, who was Indian Affairs minister when he retired from politics in 2004 after 16 straight years in the House of Commons, said he decided to get back into federal politics because of what he saw as a top-down approach by the former Harper government.

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Webequie chief calls for true partnerships at mining summit – by Rick (Wawatay News – November 2015)

http://www.wawataynews.ca/

Webequie Chief Cornelius Wabasse called for “true partnerships” at the 4th Annual Mining Ready Summit, held Oct. 28-29 in Thunder Bay.

“That’s the way going forward for us to have a step in the processes and also be part of the processes that are potentially going to happen in our area,” Wabasse said. “We have to have these agreements and they have to be real and they have to be honoured.”

Wabasse said his community does not want to sign agreements where “nothing is happening on our side.”
“We know that we have to work our part as well too to make that agreement become reality,” Wabasse said. “We need to understand as First Nations about that agreement, what we need to do to make that happen as well too.”

Wabasse said his community is not opposed to development. “We want to be able to benefit from our lands and resources,” Wabasse said. “We want to be able to benefit from any development that is happening in our area.

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Fiery Exchanges in Question Period over Ring of Fire (NetNewsLedger.com – November 5, 2015)

http://www.netnewsledger.com/

QUEEN’S PARK – POLITICS – There was a fiery exchange in Question Period in Queen’s Park between Progressive Conservative leader Patrick Brown and Thunder Bay Superior North MPP and Minister of Northern Development and Mines Michael Gravelle today. The PC Leader is demanding action on the Ring of Fire mining project that Brown states is stalled after eight long years.

There have been reports, in the Financial Post that Noront Resources is frustrated over progress on the mining project.

Minister Gravelle stated “As a government, we remain absolutely committed to the project. We have got our commitment of $1 billion locked in, thanks to the Minister of Finance for the transportation infrastructure corridor. We are looking forward to having an opportunity to have a discussion with the new federal government to engage in the process that was not very successful in the past with the previous government.

“We are engaged in a regional framework discussion with Matawa First Nations, and we have set up a development corporation to move that forward. So we are indeed making very positive progress.”

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Chromite tax helped kill Capreol plant: Tories – by Keith Leslie (Canadian Press/Sudbury Star – November 6, 2015)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

TORONTO — Ontario’s Opposition says a Liberal government plan to tax the mineral chromite prompted Cliffs Natural Resources to pull out of the Ring of Fire mining project in the province’s north.

The U.S.-based Cliffs withdrew earlier this year from the Ring of Fire, a region 540 kilometres northeast of Thunder Bay that is rich in deposits of copper, nickel, platinum and chromite, which is essential for making stainless steel.

The company, which spent $550 million to buy land in the area, was in negotiations with the Ontario government for a $3.3-billion capital investment to develop the Ring of Fire until it pulled out last spring. It also cancelled a planned $1.8-billion chromite processing facility in Capreol.

Documents released as part of an investigation into cancelled gas plants in the Toronto-area four years ago revealed the province wanted to impose a royalty on chromite mined by Cliffs of between $6.6 million and $34.4 million a year.

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Taylor Mine is the newest mine in Ontario (Northern News – November 5, 2015)

http://www.northernnews.ca/

KIRKLAND LAKE – St Andrew Goldfields Taylor Mine project is now in commercial production and will increase the company’s gold production.

With the acceptance of the Taylor Mine closure plan the company has three gold producing mines in operation.

“We are pleased to declare Taylor the newest mine in Ontario, one which we anticipate will bolster the company’s gold production profile for 2016 by 40,000 – 50,000 ounces and provide much needed jobs and economic benefits to the communities in the region. I would personally like to thank the SAS team, the provincial government officials, the First Nations and our communities for their hard work and support in helping us bring Taylor into reality.

The mine is expected to be a significant contributor in the future as we are ramping up to full production by the end of this year,” said Duncan Middlemiss, President and Chief Executive Officer. “With the addition of Taylor to the portfolio of producing assets, we are also pleased to raise our 2015 full year production guidance to between 100,000 and 110,000 ounces of gold with the Taylor contributing 10,000 to 15,000 ounces of gold for the balance of 2015.

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Miners worried: Hydro One sale could spell price troubles – by Jonathan Migneault (Sudbury Northern Life – November 6, 2015)

http://www.northernlife.ca/

Electricity-hungry industry depends on competitive power rates

If the controversial privatization of Hydro One results in increased hydro prices, it could spell trouble for the province’s mining sector, says the Ontario Mining Association.

“We’re concerned, obviously,” said Chris Hodgson, the association’s president. “The mining market is not great, so if you want to stay in business you have to be competitive.”

Hodgson and other mining industry representatives were a Queen’s Park on Nov. 3, where they met with various MPPs for the annual Meet the Miners lobby day.

The province’s rising hydro rates were a big topic of discussion during the meetings, Hodgson said. Hydro costs represent around 15 per cent of a mine’s operating costs, and with smelting operations that can increase to 30, or even 50 per cent, Hodgson said.

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[Noront] Junior miner wants faster government action on providing Far North infrastructure – by Ian Ross (Northern Ontario Business – November 6, 2015)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Noront Resources president-CEO Alan Coutts isn’t enamoured with the provincial government’s glacial pace of infrastructure planning in the Ring of Fire, but his junior mining company has no immediate intention to mothball its nickel project in the region.

“We don’t have any plans to stop activities at this time,” said Coutts, a day after Noront announced the start of a modest $650,000 step-out exploration program, three kilometres from its flagship Eagle’s Nest nickel deposit.

A rather upbeat Coutts was beating back a Toronto newspaper report that the main mineral developer in the Ring of Fire was threatening to suspend exploration in an effort to speed up a government commitment to build mining-related infrastructure in the Far North.

The article, citing unnamed sources close to the company, said Resource Capital Funds, Noront’s main financier, is supportive and that such a work stoppage could be made within weeks.

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[Timmins] 2 local derelict mine sites among those cited in ECO report – by Alan S. Hale (Timmins Daily Press – November 5, 2015)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Ontario’s environment watchdog has released a report slamming the provincial government and the mining industry for not putting in place adequate financial assurances to prevent the government from footing the bill for any clean-up after mining operations.

Such provisions are legally required in all mining project closure plans, but the Environment Commissioner of Ontario found that in July there were five idle operations in Ontario without sufficient financial assurance measures in their closure plans. Two of those projects listed in the report are in the Timmins area.

One is the Carshaw-Malga Mine and Mill property located in Shaw and Carman Townships, approximately 25 kilometres southeast of Timmins. The site, owned by Marshall Minerals Corp., was mined and milled gold-bearing ore in the mid-1980s. In 1990, the mill was reactivated to process nickel ore.

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Liberals killing $60M project – NDP – (North Bay Nugget – November 5, 2015)

http://www.nugget.ca/

Northern Development Minister Michael Gravelle came under fire in the provincial legislature Thursday for inaction at the Ring of Fire, with the NDP charging that the Liberals are on track to kill a $60-billion mining project.

The questioning followed a report earlier this week from the Financial Post that Noront Resources Ltd. warned the province that it will stop work unless they can show some progress has been made on First Nations agreements and infrastructure for the remote mining development.

The company has spent millions on the Eagle’s Nest project in the Ring of Fire but work and spending could stop by end of December if progress isn’t made.

“Minister, we attended Meet the Miners Day and you boasted of your government’s commitment to mining in Ontario. Last year, mining giant Cliffs, which spent $550 million in the Ring of Fire, said they can no longer do business with this Liberal government and sold their claims at a massive loss to Noront for $20 million,” charged Algoma-Manitoulin NDP MPP Michael Mantha.

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Ring of Fire player feels pressure – by Carl Clutchey (Thunder Bay Chronicle-Journal – November 5, 2015)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Even as it starts a new exploration program in the Ring of Fire this week, the mineral belt’s lone main player admits it’s never been tougher to secure the funds for such projects.

“I don’t want to sound gloom-and-doom, but it is a tough market out there and investors want to see progress,” Noront Resources CEO Alan Coutts said Wednesday.

Noront has earmarked $600,000 to resume exploration in the area of its existing proposed Eagle Nest nickel mine about 500 kilometres northeast of Thunder Bay.

Though metal prices, including nickel, are down, Coutts said the Toronto-based company remains committed to getting its mine up and running about four years from now.

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