Updated Mining Marshall Plan for Northern Ontario – by Stan Sudol

Stan Sudol is a Toronto-based communications consultant and strategist who writes extensively on the mining sector. stan.sudol@republicofmining.com

A version of this article was published in the August issue of Northern Ontario Business and the September issue of the Canadian Mining Journal.

What a difference a decade makes! Ten years ago, according to many in the Toronto media, mining was a sunset industry and a modern industrial country/province should not be in such a supposedly “low tech” sector. Some even thought we should let the industry die and allow lesser developed countries to be the primary suppliers of mineral commodities.

At that time, Ontario budgets were only a billion or two in the red, and its manufacturing sector was the cornerstone of a strong economy. Today, emerging markets like China, India are competing with the United States, Japan, South Korea and other developed nations for access to mineral resources around the world, the basic building blocks of any modern industrialized society. The mining sector has become one of the most strategic sectors of the global economy. And Ontario is a “have not” province, set to receive $2.2 billion in equalization transfers in the next fiscal year and run a $16.6 billion deficit.

Currently, Ontario faces a number of key economic problems including an aging workforce, crumbling infrastructure and provincial budget deficits that will not be able to sustain existing social programs. In addition, the South’s manufacturing might, which supported Ontario’s high standard of living since the 1950s, is under extreme stress due to globalization, a weak U.S. market – the destination of almost 90% of our manufactured goods – and high electricity costs.

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Timmins still in the race for Ring of Fire facility – (Timmins Daily Press – July 21, 2011)

The Daily Press is the newspaper of record for the city of Timmins

By The Daily Press

Timmins is still in the running to be the homebase for processing ore from Ontario’s biggest mineral discovery in the past century. Representatives of Cliffs Natural Resources recently visited the city. Cliffs is looking for a community to host its ferrochrome production facility — a key component in developing the Ring of Fire.

Massive deposits of chromite, copper, nickel, platinum, diamonds, palladium, gold and silver have been discovered in the Ring of Fire, west of James Bay. Officials with the Timmins Economic Development Corporation and the city recently met with representatives from Cliffs.

“We have been working with Cliffs Natural Resources for quite some time now,” said Dave McGirr, chairman of the TEDC. “We prepared a detailed background document describing why Timmins would be the logical choice for Cliffs’ ferrochrome facility.

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Northern [Ontario] plans fail to hit the mark – by Brian MacLeod (Sudbury Star – July 21, 2011)

The Sudbury Star, the City of Greater Sudbury’s daily newspaper. Brian MacLeod is the managing editor. brian.macleod@sunmedia.ca

When the Ontario Liberals unveiled the draft of their Growth Plan for Northern Ontario in 2010, some critics said it lacked plans for implementation, such as timing, funding and sufficient monitoring.

And they complained it didn’t protect resources, a sore point in the North, since two of the largest mining companies in the world — Inco and Falconbridge — were taken over by foreign companies.

Xstrata, which bought Falconbridge, shut down the Kidd Creek metallurgical plant in Timmins, and changes sought by Vale, which bought Inco, resulted in a year-long strike by the United Steelworkers.

Changebook North, the Progressive Conservatives’ attempt at showing love for Northern Ontario, whose 850,000 citizens have a hard time feeling amore from Queen’s Park, suffers from an even more glaring lack of details.

Of the two growth plans, the Liberals’, at 60 pages, is more complex and wide-ranging, but it’s not a blueprint — there’s too much wiggle room and too much left to interpretation.

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Mining company, (Constance Lake) First Nation leadership end dispute – by Leith Dunick (tbnewswatch.com)

www.tbnewswatch.com

Aubrey Eveleigh, president and CEO of Zenyatta Ventures Ltd., points out an area of dispute, known as the Albanry Project. The company on Monday finalized an agreement with Constance Lake First Nation that will allow the junior mining firm’s exploration plans to go ahead. Prestige Limousine

A Thunder Bay-based junior mining company’s three-month dispute with Constance Lake First Nation is over. Aubrey Eveleigh, president and CEO of Zenyatta Ventures, said the agreement was finalized on Monday, a deal which will give his company the right to proceed with the Albany Project, a claim staked about 45 kilometres west of Hearst.

In return they’ve made concessions to the First Nation community of 1,400, including preferential consideration for job opportunities and contributions to a fund to benefit Constance Lake’s elders and youth.

“We’re quite happy that it’s over with now and we’re both moving forward to help explore in the area known as the Albany Project,” Eveleigh said.

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Symbol of Ontario legislative authority goes on a summer vacation to the James Bay coast

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.

The ceremonial Mace from the Ontario Legislature, which is adorned with two diamonds from De Beers Canada’s Victor Mine near Attawapiskat, went on a summer vacation earlier this month.  This symbol of authority at Queen’s Park made its first trip outside the Legislature since 1867 and toured the Victor Mine and communities on the James Bay coast. 

The first and second diamonds mined, cut and polished in Ontario, which were donated by De Beers Canada, were encrusted in the Mace when it was refurbished in 2009.  Accompanying the Mace on its rare summer vacation were Speaker of the Ontario Legislature Steve Peters, his Sergeant-at-Arms, Queen’s Park officials and the local MPP for Timmins-James Bay Gilles Bisson.

“Visiting the Victor Mine was an excellent opportunity to bring the diamonds, which grace the Ontario Legislature’s Mace, back to the people who mined them and the First Nations whose lands the diamonds came from,” said Mr. Peters, who also served as Ontario’s Minister of Labour from 2005 to 2007.  “The health and safety practiced by De Beers is commendable and something every organization and company should aspire to attain.”  

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[Timmins] Miners dig deal – by Kristine MacDougall (Timmins Daily Press – July 20, 2011)

The Daily Press is the newspaper of record for the city of Timmins

Goldcorp, Xstrata Copper finalize partnership agreement

A new partnership agreement between Xstrata Copper and Goldcorp is providing a sustainable future for both operations in Timmins. “We’ve been working on this agreement for over a year, and to finally see it be signed is a great accomplishment,” said David Yaschyshyn, Xstrata Copper’s superintendent of environment and industrial Hygiene.

“It truly is a win-win for both operations.” The announcement came Tuesday morning at Goldcorp’s Hoyle Pond Mine Site, just east of the met site property in Hoyle Township.

“We’ve secured a long-term supply of tailings for the paste filling operations at the Kidd Mine for its life. As well as being able to secure a supply of rock for our construction activities at the Kidd Concentrator site,” said Yaschyshyn.

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Ontario gold producer Wesdome’s expansion supports new opportunities in Algoma

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.

Like people, mine developments come in all shapes and sizes.  They are diverse.  Gold producer Wesdome’s recently announced re-starting of its Mishi Pit near Wawa on a year-round basis is an example that proves even small operations can offer major positive contributions to host communities. 

Wesdome recently had its amended closure plan for the Mishi open pit approved, which gave the green light to expanding production from the Mishi pit to a 12-month-a-year operation.  Ore from the Mishi surface mine will be shipped two kilometres to the Eagle River Mill and mine complex.

The initial five year expansion plan will boost Eagle River production by 1,000 ounces of gold per month and the $48 million expenditure for labour and equipment will be a boost to Wawa.  Donovan Pollitt, Wesdome President and Chief Executive Officer, says the expansion will lead to 16 new people being hired at the mine and a second shift will be run at the mill.  He added that a contractor has been hired to drill, blast and haul the ore to the mill and it is expected 10 to 15 people will be added to its payroll for this project. 

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NEWS RELEASE: KWG Applauds Unity Declaration of Matawa Chiefs

Montreal, Canada, July 15, 2011 – KWG Resources Inc. (TSXV: KWG) welcomes the announcement yesterday of the Unity Declaration made by the Chiefs of the nine First Nations of the Matawa Council of First Nations.

“This is an exceedingly encouraging development”, said KWG President Frank Smeenk. “There has been a lot of jockeying amongst all the players affected by the Ring of Fire discoveries, and the Chiefs are demonstrating their profound wisdom in determining to act together to confront those opportunities for all of their communities and people.”

“We are in complete agreement with Chief Moonias of the Marten Falls First Nation when he observed, in the press release announcing the Unity Declaration:   ‘Our First Nations do not oppose responsible development but as the people of the land, we want to benefit from these potential mining developments and negotiate meaningful employment and business opportunities for our communities, while ensuring the environment is not at risk’.”

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Hudak promises change for the North – by Wayne Snider (Timmins Daily Press – July 15, 2011)

Wayne Snider is the city editor for The Daily Press, the city of Timmins newspaper. Contact the writer at news@thedailypress.ca.

“I understand why people would be cynical. For years the government has put
the wish list of Southern Ontario special interest groups ahead of Northern
Ontario….We need to demonstrate to all Ontarians the vital need to develop
the Ring of Fire….This is a once in a century opportunity.”
(PC Leader Tim Hudak – July 15, 2011)

www.changebook.ca/north

Tory leader says Kidd Creek smelter shutdown was avoidable

Tim Hudak says the closure of the smelter at the Kidd Creek Metallurgical Site was completely avoidable. It was a matter of government priorities.

The provincial Progressive Conservative Leader unveiled his election platform for Northern Ontario this week. Dubbed changebook North, Hudak claims his party will create an environment that will allow the region to prosper.

High hydro costs and taxation, he said, are two of the reasons that companies like Xstrata Copper take jobs out of province. “(Premier Dalton) McGuinty failed to provide the leadership necessary to keep those jobs,” Hudak said in an interview with The Daily Press on Friday. “This was a catastrophic loss for not only Timmins, but for all of Ontario.

“We want to make Northern Ontario attractive for investment. High taxes and hydro rates have moved Ontario to the bottom of the list for investment.”

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Tories roll out Northern Ontario platform – Star Staff (Sudbury Star – July 15, 2011)

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

www.changebook.ca/north

A Progressive Conservative government would hold one cabinet meeting a year in Northern Ontario and fork over a portion of the taxes generated by new mines to northern municipalities.

A PC government would also let Northern Ontario’s towns and cities decide how they should develop and grow, the party’s candidate for Nickel Belt said Thursday.

“I’m hoping that every Northerner will read what the (Tim) Hudak government has planned for the future of the North,” Peroni said in a release.

“They will clearly see that changebook North is the result of listening to thousands of northerners in our Have Your Say Ontario survey, that it protects the Northern way of life and that it keeps wealth in the North.

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NEWS RELEASE: Tim Hudak and Ontario PCs Only Party Listening and Delivering for Northern Ontario Families

July 14th, 2011

www.changebook.ca/north

NEWS:

THUNDER BAY — Today, Ontario PC Leader Tim Hudak released changebook North – the Party’s specific commitments to Northern Ontario families to build stronger communities and create Northern jobs. While Dalton McGuinty listens to Southern Ontario special interests to create policies that simply don’t work in the North, only Tim Hudak and the Ontario PC Party have been listening to and delivering for Northern Ontario families.

Any policy to create jobs and ensure a strong future for the North has three questions at its core: Does it originate in the North? Does it protect the Northern way of life? Does it keep wealth in the North? Only if the answer was “yes” to all three would we include it in changebook North.

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NEWS RELEASE: [Ring of Fire] Matawa First Nations form United Front to Protect Natural Resources

FOR IMMEDIATE RELEASE

Matawa First Nations is a Tribal Council of nine Northern Ontario First Nations located in Nishnawbe Aski Nation (NAN). The members are Aroland First Nation, Constance Lake First Nation, Ginoogaming First Nation, Long Lake #58 First Nation, Eabametoong First Nation, Marten Falls First Nation, Nibinamik First Nation, Webequie First Nation. www.matawa.on.ca

July 14th, 2011– Today all nine Chiefs from Matawa First Nations communities signed a historic declaration, making the commitment to stand together to protect the natural resources and territories of member First Nations. The Mamow- Wecheekapawetahteewiin- “Unity Declaration”, states that the nine Matawa communities agree that they “must stand together in order to ensure our nation is protected. Therefore, we assert our Aboriginal and Treaty Rights to the land, water and resources by requiring our written consent before any development activity may proceed.” The “Unity Declaration” further states that; “Failure to consult, accommodate and receive the consent of the First Nation(s) to proceed with any work or activity is an unjustified infringement upon our Aboriginal, Treaty and Custodial rights as First Nations.”

The declaration that was unanimously supported comes after a Matawa summit that was held in Neskantaga First Nation in early June, 2011, that focused on the development of a unified strategy to move forward on future developments and the protection of the First Nations lands, waters and resources. Chief Sonny Gagnon of Aroland First Nation says; “With this declaration, we hope to send a very powerful message to industry and government- Matawa First Nations are working as one. Any development occurring around any of our First Nations communities will impact us as one and this needs to be recognized”.

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NEWS RELEASE: Detour Gold Holds Ground Breaking Ceremony for its New Regional Office in Cochrane with Provincial and Local Officials

July 12, 2011

TORONTO, ONTARIO — (MARKET WIRE) — 07/12/11 — Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) is pleased to announce that it will be breaking ground today for the construction start of its new regional office in Cochrane, Ontario. The ceremony will also mark Detour Gold’s $1.3 billion investment in the region to build the Detour Lake mine, which will be Canada’s largest gold mining operation. This special event will be attended by Hon. Michael Gravelle, Minister of Northern Development, Mines and Forestry; Hon. Chris Bentley, Minister of Aboriginal Affairs and Attorney General; Peter Politis, Mayor of the Town of Cochrane; Chief Hardisty and representatives from the local First Nations and Metis groups.

Hon. Michael Gravelle, Minister of Northern Development, Mines and Forestry said: “I am delighted to participate in today’s groundbreaking ceremony. The building of this new office is but a small part of a very large mine development project. The Detour Lake project is having a significant impact on the economy of the Town of Cochrane and all of northeast Ontario. I am appreciative of the commitments that Detour Gold has made to the Aboriginal communities in the area and that they will continue to work closely with them and the surrounding communities as they bring this project to fruition. Congratulations to everyone, I know this project will benefit the region for generations to come.”

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Pedal to the (not-so-heavy) metal [palladium] – by Lisa Wright (Toronto Star – July 9, 2011)

Lisa Wright is a business reporter with the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

What does a junior Toronto mining company have in common with avant-garde fashion designer Vivienne Westwood? They both dig palladium.

The rare precious metal has always flown under the radar compared to its more glamorous cousins gold and platinum, but lately it’s a lot hotter. Palladium quietly became the best performing metal last year, nearly doubling in value amid a scorching hot resources market.

Yet it’s still just half the price of traditional trinket ingredients gold and platinum, which is helping to push the relatively unknown white metal into the mainstream.

The fact that it’s also eco-friendly – think emission-reducing catalytic converters in cars – prompted Westwood to launch her first-ever jewelry line. The oversized yet lightweight palladium baubles debuted this spring in an effort to offer more affordable designer bling to the masses.

“It’s the rarest of the precious metals, and there’s no real substitute for it” as there are for most other metals, says Bill Biggar, chief executive of North American Palladium Ltd. in Toronto.

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Goldcorp creating a good buzz [Timmins tailings restoration] – by Ron Grech (The Timmins Daily Press – July 7, 2011)

The Daily Press is the newspaper of record for the city of Timmins.

Six years ago, the Coniaurum mining tailings property was a barren site, resembling the surface of another planet. Today, the same are is covered with tall grasses and flowering vegetation. In the midst of this reclamation site, is an enclosed area of hives set up for honeybees.

For its efforts, Goldcorp Porcupine Gold Mines has earned an award for a reclamation project which went above and beyond the usual requirements for re-greening tailing sites. The Tom Peters Memorial Mine Reclamation Award was presented to Goldcorp at a provincial reclamation held in Sudbury last week.

The award was in recognition of improvements made to the Coniaurum reclamation property on Carium Rd. in Schumacher.

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