Yes, we have the $25-million,’ Quebec firm says of asbestos plan – by Julian Sher (Globe and Mail – September 27, 2011)

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.

MONTREAL – A year ago, over a lunch of oysters and fine wine at a posh downtown restaurant, Baljit Chadha held himself out as the potential saviour of Quebec’s faltering asbestos industry. This week, he plans to deliver.

Days before a provincial government deadline this Saturday to find private funding for the Mine Jeffrey in Asbestos, Que., the wealthy and well-connected Montreal businessman says he has “letters of intent” from unnamed investors in three different countries – enough to breathe new life into an export trade critics decry for causing death.

“I have done a lot of soul-searching on this and have come to a conclusion that we are not exporting death,” said Mr. Chadha, who combines an almost evangelical fervour for asbestos with the clout needed to pull off his controversial plan.

Mr. Chadha, whose company already handled much of the mine’s asbestos sales to his native India, offered to buy the mine outright in August of 2010, for “tens of millions.” But to clinch the deal, he had to secure an additional $25-million from outside investors while the Quebec government kept the mine afloat with a $58-million loan guarantee.

“Yes we have the $25-million,” he told The Globe and Mail.

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Planning for a gold mine: Plan Nord’s impact on Quebec’s mining industry – by Nochane Rousseau (Canadian Mining Journal – September, 2011)

The Canadian Mining Journal is Canada’s first mining publication providing information on Canadian mining and exploration trends, technologies, operations, and industry events.

Nochane Rousseau, Leader, Mining Industry Services and Plan Nord Project – PwC. For more information, please visit PwC’s mining site at: www.pwc.com/ca/mining.

“The plan addresses these issues [infrastructure] by
outlining actions the Quebec government will take to
build the necessary strategic infrastructure in
territories with the highest economic potential—an
“if you build it, they will come” mentality.”

“Beyond being rich in resources, the province’s mining
industry is well established and affordable
hydro-electricity is a competitive advantage for miners
operating in Quebec.” (Nochane Rousseau, Leader, Mining
Industry Services and Plan Nord Project – PwC)

Twenty-five years may seem like a lifetime away, but the Quebec government’s Plan Nord could result in a huge transformation of Northern Quebec in what’s, in reality, a relatively short amount of time, given its ambitious objectives.

The numbers are nothing short of impressive. The Quebec Government projects Plan Nord to lead to over $80 billion in investments – $47 billion towards renewable energy and $33 billion for investments in the mining sector and public infrastructure such as roads, rail and airports. It will also create or consolidate about 20,000 jobs per year over a 25-year period. In its recently released plan, the government says it hopes the initiative will be to the coming decades what the development of La Manicouagan and James Bay were to the 1960-70s.

The mining industry could play a huge part in this investment. The 1.2 million km area the plan covers is a wealth of untapped opportunities that could surely captivate the interest of domestic and global mining companies. This territory produces all of Quebec’s nickel, zinc and iron ore, to name a few, and also represents a significant portion of gold production.

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[Canada] Two faced on asbestos – by Lorne Gunter (National Post – September 14, 2011)

The National Post is Canada’s second largest national paper.

June was a very wet month in Edmonton. It rained nearly every day. Sometimes, it poured. And sometimes when it poured, it also blew – hard. Near the end of the month, rain fell for three days straight, while the wind gusted at times from 90 to 110 kilometres per hour.

The downspout from the upper roof of our home emptied onto the lower roof, from where the precipitation rippled across the shingles, disappeared into the eaves, down the pipe attached to the bricks next to the family room window and out onto the lawn.

In the middle of the night on the third straight day of rain, all the water and wind that had played on the roof over all the years succeeded in lifting the corner of one or two shingles. First a little rain, then a lot, snuck under the protective, overlapping asphalt tiles and leaked into our family room through the pot lights in the ceiling.

Around 5: 00 a.m., as the sun was rising on the upper side of the clouds, I was awakened by a dripping sound. Climbing down the stairs, I found some of the rain that should have been running out onto the lawn falling by drips and spoonfuls onto the rug in two places, as well as onto the middle of a large, overstuffed ottoman.

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Investment needed to ensure returns on Quebec’s Plan Nord – by Bertrand Marotte (Globe and Mail – September 14, 2011)

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.

MONTREAL— Companies stand to benefit from the anticipated mining boom in northern Quebec, but they need to start building the right infrastructure projects now to capitalize on the opportunity.

The Quebec government’s ambitious $80-billion, 25-year plan to open up the vast, remote northern region of the province requires that they play a much more hands-on role in the critical development of infrastructure.

“It’s important for mining companies to be pro-active in the decision-making process because there is a need for good preparation and for clear outline of public sector-private sector responsibilities such as who will be in charge of road maintenance over the long term,” said Daniel Roth, Ernst & Young’s head of the Montreal-based infrastructure advisory service.

Infrastructure access has become more of an issue for mining companies around the world in the past year, Ernst & Young says in its annual report on the business risks facing the mining and metals sector.

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New rules will cost Quebec lost investments, miners warn – by Bertrand Marotte (Globe and Mail – September 12, 2011)

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.

MONTREAL – Quebec’s reputation as one of the most mining-friendly places in the world is taking a beating as exploration companies sound the alarm over stringent new government regulations they say could scare away at least $1-billion in investments.

Quebec is pushing ahead with proposed new legislation that would force exploration companies to win approval from local and municipal authorities for their projects.

The proposed law – Bill 14 – means companies would have to deal with a third level of regulation for their projects besides federal and provincial rules.

It also spells potential chaos as small and medium-sized companies try to navigate the uncertainty of dealing with individual municipalities which have their own local standards, say industry officials.

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NEWS RELEASE: PwC takes a new look at mining company taxation in Quebec

Mining companies in Quebec face one of the highest tax burdens in Canada

Click here for: Digging deeper: Canadian mining taxation

MONTREAL, Sept. 7, 2011 /CNW/ – An independent study conducted by PwC on provincial taxation of mining companies in Canada reveals that nearly 41% of mining profits in Quebec are paid as taxes and royalties, including the federal component, while the Canadian weighted average based on the value of output is 36.8%. Quebec ranked 11th back in 2007, when it was the lowest taxing province; today, it ranks third.

“Amid the ongoing lively debate over mining company taxation in Quebec, a number of the study’s conclusions are relevant when it comes to taking a new look at Quebec’s tax regime, particularly income tax and the mining tax”, said Nochane Rousseau, Leader‚ Mining Industry Services and PwC’s Plan Nord Initiative.

•In Canada, the overall tax burden (combined federal/provincial) in all jurisdictions fell between 2007 and 2011 (going from weighted average based on the value of output of 40.7% to 36.8%), with the exception of Quebec, where it rose from 35.4% to 40.9%.
•In Quebec, 41% of mining profits are paid as taxes and royalties, including the federal component. Quebec has the third-highest overall tax burden (combined provincial/federal) in Canada.

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Quebec [mining] firms fear impact of Bill 14 – by Peter Hadekel (National Post – September 2, 2011)

The National Post is Canada’s second largest national paper.

Quebec’s mining companies say the government should create an independent commission to govern the industry, like the commissions that oversee the financial industry and agricultural zoning.

The recommendation comes from the Quebec Mineral Exploration Association, which is worried about the impact of a new bill now under consideration by the Quebec National Assembly.

Mining exploration has been booming in this province over the past several years, with billions of dollars worth of projects now underway or on the drawing boards.

But getting those projects started is sometimes difficult. Companies with mining claims have to reach a deal with property owners, who often want more information about drilling plans as well as financial compensation.

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NEWS RELEASE: Government Intervention May Threaten Global Mining Industry – Quebec Remains One of the Best Places to Invest

To consult a full report on the mining sector please visit: http://www.rcgt.com/en/experts-opinions/anand-beejan-unveiling-global-study-mining-sector/.

“The Northern Plan has strengthened Quebec’s position as one of the best places to invest in the mining sector in the world,” – Anand Beejan, Partner and Mining Sector Expert

Montreal, August 17, 2011 – Raymond Chabot Grant Thornton unveiled today a global study on the mining sector conducted by Grant Thornton International. The report demonstrates that government intervention in the mining sector is causing high levels of uncertainty among companies and investors. In addition, it states that the current approach of governments threatens not only the long-term growth of the mining industry, but also that of the global economy.

The report states that increasing and unpredictable intervention across the world’s leading mining jurisdictions is adding uncertainty to a sector already laden with risk. Changes to taxation, nationalisation of resources and environmental legislation are pushing complexity to acute levels for mining companies and pose a threat to commodity prices. In this regard, the extent of government interventions are also increasing risks for investors, clouding corporate valuations and making it harder to raise capital.

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Xstrata to expand Canadian operations, sweeten payouts – by Brenda Bouw (Globe and Mail – August 3, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. Brenda Bouw is the Globe’s mining reporter.

Global mining giant Xstrata PLC will use bulging profits to expand its Canadian operations and sweeten shareholder payouts, a sign of the industry’s rosy demand outlook despite global economic uncertainty alongside rising costs and government intervention.

Xstrata, based in Zug, Switzerland, said profits rose by about 30 per cent in the first half of the year, and the diversified miner more than doubled its dividend on the back of record-setting commodity prices.

“Our recovery has been swift and robust and we are now operating with good momentum to deliver a substantially stronger second half,” Xstrata chief executive officer Mick Davis told investors on Tuesday. He cited in particular strong demand from China, the world’s largest consumer of commodities, as the country continues its frenzied infrastructure build.

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Along the Blacktop of Riches: The Abitibi-Greenstone Belt – by Charlie Angus (1999)

Excerpt from Industrial Cathedrals of the North written by Charlie Angus and photographed by Louie Palu (1999)

To order a copy of Industrial Cathedrals of the North, please go to Between the Lines press.

Take a drive along the blacktop as Highway 66 turns into 117 and you’ll be taking a drive over one of the richest geological treasures in the world. The highway forms the lower part of a belt of riches known as the Abitibi-Greenstone belt. Over 140 million ounces of gold have been mined from the belt, a feat unparalleled anywhere except in the gold fields of South Africa. The belt is made up of two parallel fault lines running east-west from Ontario into Quebec. The northern edge of the belt – the Porcupine-Destor Fault – runs from the Porcupine along Highway 101 to Destor, Quebec, while the lower fault – the Larder-Cadillac Break – runs from Matachewan, Ontario along 66 towards Val d’Or, Quebec. The fault lines have been the source of some of Canada’s biggest gold mines. The ground between the faults is host to numerous base metal deposits.

The Larder-Cadillac Break is as much a social line as it is a geological formation. The fault runs straight through the heart of many historic gold camps: Matachewan, Kirkland Lake, Larder Lake, V-Town, Rouyn-Noranda, McWatters, Cadillac, Malarctic and Val d’Or. The Abitibi-Greenstone belt has created a natural east-west link across the two provinces. Communities along the fault lines share common links of history, work and identity. Indeed the whole opening up of Northwestern Quebec to mining is a direct result of the movement of prospectors and miners along the lines of the Abitibi-Greenstone belt.

Prospector Ed Horne played a pivotal role in this early development. Before the first World War he was prospecting in Gowganda, Kirkland Lake and the Porcupine. He then moved along the westerly axis from the Kirkland-Larder camps into the Lake Osisko region of Rouyn Township, Quebec.

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Asbestos: Killer product or toxic PR? – by Mark Bonokoski (Toronto Sun – July 10, 2011)

Mark Bonokoski is a columnist for the Toronto Sun, the city’s daily tabloid newspaper.    mark.bonokoski@sunmedia.ca

Back in May, an international consortium of doctors, scientists, labour leaders and health organizations wrote a rather pandering letter to Zimbabwe dictator Robert Mugabe.

And, in that letter, they appealed for “His Excellency” to back off reopening two old asbestos mines in the country he has already impoverished by murderously turning Africa’s certified bread basket into a certifiable basket case.

Prime Minister Stephen Harper’s name was not mentioned, but it was implied, citing the Canadian government’s support for the reopening of the Jeffrey asbestos mine in Quebec as the kind of “reprehensive and retrogressive” action that Zimbabwe should not emulate.

The World Health Organization, the International Labour Organization and the International Trade Union Confederation — claiming to represent 176 million workers in 151 countries — have all called for a global end of the use of any form of asbestos, citing it has led to the deaths and chronic disabilities of thousands of innocent victims from cancer and the respiratory disease of asbestosis.

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Sitting on a gold mine – by Lisa Wright (Toronto Star – July 2, 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.

It began with dreams of a glittering gold price and a gutsy geological gamble. And it took shape in Malartic, population 3,600, a town 520 kilometres northwest of Montreal that literally sits on a gold mine. The highly anticipated project became Canada’s largest gold mine when it opened in June.

But when Osisko Mining Corp. started drilling in 2005, they quickly made a discovery. “We realized the biggest problem was that there were 205 houses and six institutional buildings sitting right on top of it (the deposit),” recalls Osisko chief executive Sean Roosen.

“After we drilled 30 holes we said, ‘Well, that’s a pretty interesting deposit. Unless we can convince the good folks of Malartic to move, it’s a no go.’” That wasn’t the only hurdle.

Osisko had to talk Bay St. into a $1 billion financing for the big move and mine construction in the remote Quebec town amid a severe market downturn.

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Brain drain in Canada threatens mining’s future – by Agence France-Presse (Montreal Gazette – June 29, 2011)

http://www.montrealgazette.com/index.html

MONTREAL — A shortage of mining specialists in Canada is hobbling the industry at a time when emerging giants India and China are pushing demand for ores and precious metals to record highs, experts say.

“You can’t find good geologists,” Rene Marion, chief executive of AuRico Gold, a Canadian company with mining operations in Mexico, told AFP.

“Hiring is a major, major problem,” echoed Jean-Marc Lulin, head of junior mining company Azimut Exploration. Canada is home to several major multinational mining firms, including Barrick, the world’s largest gold producer, with operations on five continents.

Companies are desperate for geologists, mining engineers and workers with metallurgical, chemical, electrical and environmental expertise, as well as good managers, according to McGill University’s Hani Mitri.

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With asbestos, we are the Ugly Canadians – by Jeffrey Simpson (Globe and Mail – June 25, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

Billions of dollars will be spent over the next two decades to repair the Parliament Buildings. One reason for the repair: The buildings are full of asbestos, a cancer-causing substance that Canadians no longer use.

But we mine asbestos, we ship it, we make money from it, and we’ll use every diplomatic trick in the book to defend this odious practice. We are the Ugly Canadians.

The Harper government could care less. It vigorously defends mining asbestos because of one little corner of Quebec, near Thetford Mines, where the asbestos is mined and shipped to developing countries, mostly in Asia. Stephen Harper’s top Quebec minister, Christian Paradis, used to head the Thetford Mines chamber of commerce. Mr. Harper campaigned in the area and supported the mining. He spent part of Friday, St. Jean Baptiste Day, in Thetford Mines, thereby reinforcing his government’s political marriage to asbestos.

This week, the Ugly Canadians stood alone against the world in blocking the listing of chrysotile asbestos as a hazardous chemical under the Rotterdam Convention.

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