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Ontario Mining

Life matters the most [Vale Sudbury mining deaths recommendations] – by Carol Mulligan (Sudbury Star – January 25, 2012)

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

A team from Vale Ltd. investigating the June 8, 2011, deaths of Jason Chenier and Jordan Fram at Stobie Mine has made more than 30 recommendations to prevent similar tragedies from occurring again.

Kelly Strong, Vale’s vice-president of mining and milling operations, said several factors contributed to the deaths of the men.

Chenier, 35, and Fram, 26, were killed about 9:45 p.m. when they were overtaken by 350 tons of muck while working around the No. 7 ore pass at the 3,000-foot level of the mine. Strong offered two scenarios for how the accident might have occurred.

One is that there was a buildup of wet, fine sandy muck above the crash gate on the 3,000 level, which collapsed and drove its way down the ore pass, overtaking the two men. The other is that there was a hang-up of wet, fine sandy muck above coarser material, which unexpectedly let go.

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Gold junior [Solid Gold Resources] sues Ontario govt for C$100m over ‘precedent-setting’ ruling – by Matthew Hill (Miningweekly.com – Janaury 24, 2012)

Mining Weekly is South Africa’s premier source of weekly news on mining developments in Africa’s most important industry. Mining Weekly provides in-depth coverage of mining projects and the personalities reshaping the mining industry.

TORONTO (miningweekly.com) – Solid Gold Resources, a Toronto-based junior with precious-metals prospects in Ontario, said on Tuesday it is suing the Ontario government for C$100-million, and possibly more.

The company is seeking damages sustained as a result of a January 3 Superior Court of Ontario ruling that prevents it from drilling at its Lake Abitibi property, located east of Timmins in northern Ontario, for 120 days while the TSX-V-listed company consults with the Wahgoshig First Nation.

Judge Carol Brown’s judgement “squarely conflicts with the decision of the Supreme Court of Canada in Haida Nation v. British Columbia, which held that third parties cannot be held liable for failing to discharge the Crown’s duty to consult and accommodate,” Solid Gold said in a statement on January 19.

It said it would appeal the decision.

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Vale: Investing in the Future – by Gay Sutton (Business Excellence Magazine – Janauary 23, 2012)

This article is from Business Excellence Magazine

When the world’s second largest diversified mining company Vale acquired the iconic Canadian nickel miner Inco five years ago it was the beginning of the largest investment in Canadian mining in the country’s history, as Cory McPhee explains to Gay Sutton.

Superficially, the icy northern reaches of Canada and the hot arid deserts of Australia have little in common other than the language. Look more closely, and both benefit from enormous mineral resources that account for a significant portion of the national economy and an even greater percentage of their exports. Moreover, some of these resources have been mined for more than a century and a half. In both cases a number of famous mining towns and cities have sprung up – providing services, products, homes and entertainment for those working in some of the world’s least hospitable places.

The city of Sudbury in Ontario is one such place. With long cold winters and brief but warm and humid summers, it began as a simple mining camp in the rich geological region known as the Sudbury Basin. Today Sudbury is a city of some 158,000 people and its economy has diversified to include financial services, business, tourism, healthcare and education. But mining continues to play a significant role. According to figures produced by the Greater Sudbury Development Corporation last year, Vale – which can trace its history back to 1902 when Inco opened its first mine in Sudbury – is still the city’s largest employer. 

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The [Far North Act] Colouring Book Government – by Livio Di Matteo (Northern Economist Blog- January 21, 2012)

Ontario Government Far North Act Coloring Book

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario. Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Click Here for the: Far North Act Colouring Book

The Far North of Ontario and in particular, the Far North Act, has generated a contentious set of policy issues for Ontario’s government.  For the uninformed, the Far North Act is a process for community-based land use planning and development, that is also setting aside from development an interconnected area of conservation lands of at least 225,000 square kilometres — an area that is about 20 per cent of the landmass of Ontario.

To put it into context, it is an area about twice the size of southern Ontario — which represents only about 10 per cent of Ontario’s land mass.  There is concern about its impact on the long-term development prospects of Northern Ontario and the First Nations in the Region.  A response of the provincial government is that the Act has been misunderstood and needs to be better explained.

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Mining-based Sudbury is the Luckiest City in North America – by Stan Sudol (Sudbury Star – January 23, 2012)

This column was published in today’s  Sudbury Star , the City of Greater Sudbury’s daily newspaper. It is the start of a monthy mining column for the Sudbury Star.

Stan Sudol is a Toronto-based communications consultant and columnist who blogs at www.republicofmining.com ; stan.sudol@republicofmining.com

Last year the global population reached seven billion. More than half of us now live in urban centres and experts estimate that figure will climb to 70% by 2050. China is witnessing the largest rural to urban migration in the history of mankind in its stampede to industrialize and modernize. China also has become the world’s second largest economy and currently needs to build the equivalent of two cities the size of Toronto and Sydney Australia every year to accommodate this rapid growth. India, Brazil, Russia, Indonesia and other developing countries are following in its footsteps but at a less frenzied pace.

According to a recent study by McKinsey & Company, “up to three billion more middle-class consumers will emerge in the next 20 years compared with 1.8 billion today, driving up demand for a range of different resources.” Notwithstanding the current depressed prices of some metals, most analysts feel that the current mining commodity super-cycle will last for decades. It is estimated that over the next 25 years, we will need to dig out of the ground as many minerals as consumed since the beginning of time.

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Cliffs Natural Resources makes case for $1.8B smelter – by Carol Mulligan (Sudbury Star – Janurary 21, 2012)

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

Cliffs Natural Resources is looking to spend close to $3 billion to get its chromite project in Northern Ontario into production, with $1.8 billion of that going to build a ferrochrome processing plant, the company said this week.

Cleveland-based Cliffs released its 2012 capital expenditure plan Thursday.

The company said it will spend $150 million to develop the Black Thor mine site, one of three sites it controls in the Ring of Fire, and $800 million to construct a near-mine concentrating plant.

Not included in those estimates is $600 million to build an all-weather road it says will benefit remote northern communities and other Ring of Fire mining projects.

Because of that, Cliffs says it will be looking to private and “government entities” to share the cost of the road.

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NEWS RELEASE: Cliffs Natural Resources Inc. Announces 2012 Capital Expenditure Plan

Company Also Provides Preliminary Capital Estimates for Chromite Project Based on Ongoing Prefeasibility Study

CLEVELAND, Jan. 19, 2012 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced projected full-year 2012 capital expenditures expectations. Cliffs plans to invest approximately $1 billion, comprised of approximately $300 million of sustaining capital and $700 million of growth and productivity-improvement capital. Cliffs’ 2012 capital budget represents an expected 12% increase over the Company’s 2011 capital expenditures of approximately $880 million. Cliffs indicated this amount was less than its previous estimate of $900 million and an original 2011 budget of $1 billion.

(Logo:  http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

While plans will continue to be reviewed and adjusted in response to changes in market conditions and other factors, Cliffs’ 2012 capital budget is primarily intended to fund the organic growth pipeline the Company has acquired through the completion of a number of strategic transactions in recent years. These transactions have meaningfully diversified Cliffs’ business and provided the Company significant exposure to customers outside of its historical North American steelmaking customer base.

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[Quebec Plan Nord] Is More Talk the Right Prescription for Northern Ontario? – by Livio Di Matteo (Northern Economist Blog – January 19, 2012)

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario. Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Media reports on the visit yesterday by Quebec based consultants who worked on Quebec’s Plan Nord appear to have emphasized their prescription for more planning and discussion.  The Plan Nord is the Quebec government’s parallel to our own Northern Growth Plan and their plan to develop their own north with anticipated investments of 80 billion dollars and the creation of as many as 20,000 jobs. 

The Mayor of Greenstone was quoted as saying the time for talk had passed and some direct action was needed by the province in getting things going.  On the other hand, according to a report on TBNewswatch:

A pair of Quebec-based consultants, however, have suggested what’s needed is more talk.  It’s worked in Quebec, said Yvan Loubier, a senior consultant for National Public Relations in Quebec City, who has worked with both governments and communities in Northern Quebec to help facilitate a 25-year plan for economic salvation in an area hard hit by many of the same concerns afflicting Northern Ontario, particularly First Nations communities. It didn’t come easily, at least not at first.

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New agreement strengthens Ontario mining industry-First Nations relations

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.

A Memorandum of Understanding between Ontario Mining Association member Quadra FNX and the Sagamok Anishnawbek First Nation strengthens relationships among mining companies and First Nations in the province.  The MOU is designed to serve as a foundation for a working relationship between both parties concerning Quadra FNX’s advanced exploration program on the Victoria Project in Sudbury.

Quadra FNX and the Sagamok First Nation will work towards a full Impact Benefits Agreement.  The company is proceeding with efforts to gain environmental permitting for the project.  The MOU was signed in Sudbury by Chief Paul Eshkakogan of the Sagamok First Nation and Michael Winship, Chief Operating Officer of Quadra FNX.

“This MOU will facilitate open and timely dialogue between Quadra FNX and our First Nation as it relates to the company’s activities to develop the Victoria Advanced Exploration project,” said Chief Eshkakogan.  “We look forward to negotiating an IBA that will provide benefits for our members and ensure the environment and our traditional territories are protected.”

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[Quebec’s Plan Nord] Growth tips shared – Special to The Chronicle-Journal (Thunder Bay Chroncicle-Journal – January 19, 2012)

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

Those who helped develop Plan Nord say the next 25 years are going to be exciting for Northern Quebec. Northwestern Ontario would like to share in some of that excitement.

Members of National Public Relations, who helped develop Plan Nord, gave a presentation in Thunder Bay on Wednesday.

The presentation was hosted by the Northwestern Ontario joint task force on regional economic development pilot project, the Northwestern Ontario Associated Chambers of Commerce and the Northwestern Ontario Municipal Association.

Plan Nord is an economic development project aimed at Northern Quebec, which over the next 25 years is estimated to generate more $80 billion in investments and create more than 20,000 jobs a year.

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NEWS REALEASE: Lonmin Plc Makes Private Placement in Wallbridge Mining

Toronto, Ontario – January 17, 2012 – Wallbridge Mining Company Limited (TSX:WM) today announced that it had entered into an agreement (which is subject to approval of the TSX) with the world’s third largest platinum producer Lonmin Plc (“Lonmin”) whereby Lonmin will purchase 13,157,895 units (“Units”) of Wallbridge at a price of C$0.19 (Canadian) per Unit which was calculated based on the 90 day volume-weighted average price to December 13, 2011, being the date the parties agreed upon the pricing for the transaction.

“This recent investment shows Lonmin’s continued confidence and support for our exploration work in Sudbury. The Sudbury Basin is the most attractive target area in the world for the discovery of high grade copper, nickel and platinum deposits” stated Alar Soever, CEO of Wallbridge.

“The long term relationship with Lonmin since January 2002 demonstrates that Lonmin continues to be not only a great Joint Venture partner, but also a supportive shareholder of Wallbridge in our exploration work in Sudbury” said Marz Kord, President of Wallbridge.

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Minister points finger at McGuinty [Ontario power rates to high] – by Ron Grech (Timmins Daily Press – January 17, 2012)

The Daily Press is the city of Timmins broadsheet newspaper

Tony Clement says high energy costs in Ontario forces industry to take processing elsewhere

As the federal minister for Northern Economic Development, Tony Clement says he would like to see processing of minerals from the Ring of Fire done in Northern Ontario.

However, Clement says it is up to the provincial government to make that happen. Officials with Cliffs Natural Resources, a Cleveland-based company looking to develop a chromite mine within the James Bay lowlands, have publicly expressed interest in doing some of the processing in Asia.

“We’d like to see more of the processing here but one of the major impediments are energy costs,” Clement said during a stopover in Timmins on Monday. “That’s Mr. (Dalton) McGuinty’s bailiwick. He’s got to do his job as premier of this province to get energy costs more in line.”

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NEWS RELEASE: QUADRA FNX & SAGAMOK ANISHNAWBEK SIGN MEMORANDUM OF UNDERSTANDING FOR THE VICTORIA PROJECT

Sudbury, Canada– January 17, 2012 – Sagamok Anishnawbek First Nation (“Sagamok”) and Quadra FNX Mining Ltd. (the “Company” or “Quadra FNX”) (TSX: QUX) are pleased to announce that they have signed a Memorandum of Understanding (“MOU”) that will serve as a foundation for a working relationship between the parties with respect to the Advanced Exploration Program at Quadra FNX’s Victoria Project until an Impacts and Benefits Agreement (“IBA”) is concluded. The agreement process is being pursued in conjunction with environmental permitting for the Victoria Project.

The MOU with Sagamok was signed by Chief Paul Eshkakogan and Michael Winship, Chief Operating Officer, Quadra FNX in Sudbury on December 23rd, 2011.

“This Memorandum of Understanding will facilitate open and timely dialogue between Quadra FNX and our First Nation as it relates to the Company’s activities to develop the Victoria Advanced Exploration Project. We look forward to negotiating an IBA that will provide benefits for our members and ensure the environment and our traditional territories are protected” said Sagamok Anishnawbek Chief, Paul Eshkakogan.

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Quadra boosts ore estimate at Victoria mine – by Star Staff (Sudbury Star – January 17, 2012)

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

Quadra FNX Mining announced Monday it has increased the resource estimate of its Victoria project in Sudbury by 16%.

The results from the company’s 2011 drill program at Victoria led Quadra FNX to boost resource tonnage to 14.5 million tonnes. When operating, the mine will produce nickel, copper and precious metals.

In addition, geophysical surveys show possible extensions of Victoria. Diamond drilling in 2012 will test these areas, Quadra FNX said in a release.

Even before the latest drill results became known, Quadra FNX had said the Victoria deposit was an exciting find. Its goal is to begin production in 2017, creating hundreds of new jobs.

The Vancouver, B.C.-based company also said that during 2011, it produced 220 million pounds of copper, 103,000 ounces of precious metals and 10 million pounds of nickel.

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[Plan Nord] Quebec plan may be blueprint for Northwest – Special to The Thunder Bay Chronicle-Journal (January 16, 2012)

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

Northwestern Ontario is hoping to gain some perspective and insight from Quebec when it comes to economic development in Northern regions.

Members of National Public Relations are to be in Thunder Bay on Wednesday to provide information on Plan Nord, one of the largest economic, environmental and social projects in Canada.

Plan Nord, designed for Northern Quebec, will be carried out for the next 25 years. It is estimated that it will generate more than $80 billion in investments and create more than 20,000 jobs a year.

Members of the Northwestern Ontario Joint Task Force are eager to learn more about Plan Nord, and see how it might impact Northwestern Ontario and if similar strategies can be applied in the region.

“Given the $80-billion program, is it going to be more attractive for investment than Northwestern Ontario,” task force chairman Iain Angus, said Sunday.

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