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Stan Sudol Columns/Media References and Appearances

Claiming Our Stake! Building a Sustainable Community (Part 1 of 3) – Stan Sudol

Claiming Our Stake! Building a Sustainable CommunityIn the summer of 2006, Greater Sudbury residents were extremely concerned that the local community was being overlooked during the foreign takeovers of Inco and Falconbridge. The then Mayor David Courtemanche asked me to produce a policy document that outlined the community’s concerns about the impending loss of Sudbury’s two iconic Canadian miners to foreign ownership.

Many community stakeholders were interviewed and an aggressive first draft was delivered to Mayor Courtemanche. To the concern of some of the stakeholders, myself included, the final version was less bold and assertive than originally planned.

However, it was an honour to play a key role in the production and writing of “Claiming Our Stake! Building a Sustainable Community” during this pivotal time in the mining history of the Sudbury Basin.

Stan Sudol

Executive Summary

“There is an international bidding war taking place in the Canadian mining sector, and Greater Sudbury is at the front lines. What happens here in the next few months will re-define the Canadian mining industry and this community for, the next century.

Mayor Courtemanche, Greater Sudbury (June, 2006)

Over the past year, the global business media and Canadians have been captivated by one of the most expensive and bitter takeover battles in the history of world mining. Falconbridge Limited has been taken over by Swiss-based Xstrata PLC and, while the final ownership of lnco Limited has yet to be decided, these events will permanently change the course and ownership of the country’s resource sector.

We are also witnessing one of the largest economic transformations in the history of mankind. China, India and many other developing countries are rapidly urbanizing and industrializing their societies, and mineral commodities and mining expertise are an essential part of this change. The world is entering the start of commodity super-cycle that will last for decades and create enormous prosperity.

Our community has an enormous stake in the outcome of this international bidding war. Our stake is over 100 years of mining behind us, billions of dollars of ore beneath us, and enormous opportunities in front of us. Greater Sudbury is the historic heart and soul of the global nickel industry. Most geologists and mine industry experts agree that there is still another hundred years of life to this enormous trillion dollar mining camp.

Greater Sudbury is home to one of the greatest mining camps that the world has ever known. The Sudbury Basin is the richest mining district in North America and among the top ten most significant globally. In a world full of geo-political uncertainty, Sudbury’s strategic nickel resources ensure a secure environment for the billions of dollars needed to increase production. Nickel has become the metallic version of oil.

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Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 7 of 7) – by Stan Sudol

Finland’s Strategic Nickel Deposits

In the 1930s, Inco had invested several million dollars developing valuable nickel deposits in the Petsamo district of northern Finland, close to the Russian border. At the outbreak of war events in the region unfolded with lightning speed. The Soviets invaded Finland and annexed the nickel mines in March 1940. Germany invaded Russia in 1941 and the Finns recaptured the nickel mines which were immediately put under German control.

The British wanted Inco Limited to keep operating the mines even though production would be sold to the Germans. They were hoping that Inco could slow down development and provide the necessary intelligence for nickel shipments that the British navy could destroy. The Mackenzie King government in Ottawa steadfastly refused to co-operate with this plan. Their big fear was the negative public reaction if it was discovered that a Canadian company was helping send vital nickel to the enemy.

During the First World War some Sudbury nickel had been shipped to the Germans via a neutral United States. The “Deutschland” incident caused a huge uproar in Canada and Prime Minister King was adamant that a similar event would not happen. Inco was caught in the middle but agreed to abide with the Canadian government even though its concession in Finland would ultimately be lost.

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Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 6 of 7) – by Stan Sudol

Roger Whittle’s Amazing Invention – the Jet Engine

The successful development of British-born Roger Whittle’s amazing invention, the jet turbine engine was integrally linked to Inco’s metallurgical expertise with high temperature nickel alloys.

In the early 1940s, at the request of Britain’s Air Ministry, company scientists worked furiously to solve the problem of appropriate materials for emerging designs in jet and gas turbine engines. The Germans were also working on their own version of a jet engine the Messerschmitt Me 262.

One of the most noted contributions during the war was the invention of a new alloy for jet-propelled aircraft engines by International Nickel metallurgists from the Henry Wiggin & Company Ltd. facilities in Birmingham.

This new alloy called “Nimonic 80” allowed the jet engine’s turbine parts, particularly the blades, to operate for long periods under tremendous stress, high heat and corrosive exhaust without deforming or melting. This new alloy was superior to German aircraft technology. The first British airplane outfitted with the new engine was the Meteor which first flew in 1943 and was finally approved for the air force in July, 1944.

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Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 4 of 7) – by Stan Sudol

Inco World War Two PosterThe Struggle for Union Organization

Before the war, among mining camps in Northern Ontario, Sudbury had earned the reputation of being a centre for “scabs” and “company stooges.”

Labour historian Jim Tester wrote in 1979, “Besides, they [Inco/Falconbridge] hated unions with a universal, almost pathological, passion.” He continues, “Inco had one of the best spy systems in all of North America, not exceeded by the notorious set-up at Fords. Inco’s reputation was known in every mining camp on the continent. In Kirkland Lake and Timmins there was a tremendous sympathy for the nickel workers of Sudbury. It was estimated that one in ten Inco workers was an informer.”

Inco hired people to intimidate union organizers handing out leaflets and disrupted meetings. The company even resorted to violence to keep the union out.  In 1942, two union organizers were severely beaten and hospitalized and their downtown office destroyed by a group of twelve company goons. Although it was the middle of the day, no police were around to stop the violence. Two of the twelve went public and the union printed and distributed 10,000 leaflets throughout the community telling the truth.

A portion of the leaflet read, “This may be what INCO wants — it may be what the Star wants — but it is not what we want, and not what Sudbury wants.

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Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 3 of 7) – by Stan Sudol

Inco World War Two PosterCKSO Radio Propaganda (Part 3 of 7)

The enormous war time demands for the metal ensured that the men working underground would be pushed to their very limits. For the ones who stayed at the mines, absenteeism was becoming a major issue. In the fall of 1942, the International Nickel Company of Canada sponsored a local CKSO radio program called “The Victory Parade.”

The following three radio spots were written by W.J. Woodill. The radio ads were used to encourage the general public to buy Victory Bonds as well as attempt to combat miner burnout with guilt.

“Mrs. Housewife! Are you one of those women who does her part by encouraging her husband to do his part in this war? Or are you “A Worry bird”, one of those girl friends of Hitler and Company? You know, even if that husband of yours doesn’t bring home a full war kit and rifle, he’s still doing his part if he’s doing his full eight hours of work every day. That Nickel or copper he’s turning out is mighty important these days.”

“Yes this is a critical time! Your husband is working not for so many cents an hour, but working for Victory. Working to put the metal into the hands of industry so there may be tools of war available. It’s vital that he does his job with his full heart in it. That husband of yours needs a clear head and his full attention to his job. Do your part, look after his health and his peace of mind. Remember he is needed on the job every minute of his shift.”

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Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 2 of 7) – by Stan Sudol

Inco World War Two PosterIncreased Nickel Production

In 1941 the Allied governments asked the company to increase production. International Nickel complied by committing $35 million to expand nickel output by 50 million pounds above 1940 production levels, reaching this goal by 1943 without any government subsidies. However, the Canadian government did allow the company to amortize within a five-year period, instead of ten or twenty years, $25 million worth of expansion expenditures.

That enormous task fell to American-born Ralph Parker, who at the time was the general superintendent of the mining and smelting division at Sudbury. It was one of Mr. Parker’s greatest achievements to organize the enormous program of enlarging the Sudbury mining and plant facilities without any loss of production.

To increase production of extraordinary war-time demands, Mr. Parker had to resort to “high-grading” which entails using above average ore grades and leaving behind lower grades that would have normally contributed to a longer, more profitable mine life. There was a real fear that the company would use up most of its reserves and have little to mine after the war.

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Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 1 of 7) – by Stan Sudol

Inco World War Two PosterNickel Was the Most Strategic Metal

By anyone’s estimation, the highlight of Sudbury’s social calendar in 1939 was the visit of King George VI and Queen Elizabeth on June 5th, accompanied by Prime Minister Mackenzie King and a host of local dignitaries. This was the first time a reigning British monarch had ever visited Canada, let alone Sudbury, a testimony to the growing importance of the region’s vital nickel mines. The nickel operations in the Sudbury Basin were booming due to growing global tensions and increased spending on military budgets. Sudbury and the northeastern Ontario gold mining centres of Timmins and Kirkland Lake were among the few economic bright spots in a country devastated by the Great Depression.

In an April 15, 1938 article, Maclean’s Magazine journalist Leslie McFarlane described the three mining communities as, “Northern Ontario’s glittering triangle….No communities in all of Canada are busier, none more prosperous. The same golden light shines on each.”

During the royal visit, precedence was broken by allowing Queen Elizabeth the first female ever to go underground at the Frood Mine. Traditionally miners thought women would bring bad luck if they were permitted underground. There were probably many who thought the beginning of the Second World War on September 1, 1939 was the result of her subterranean visit.

The German invasion of Poland was to have dramatic effects on Sudbury. Many communities across Canada, Britain and the United States played exceptional roles in producing certain commodities and munitions for the war effort. However, it would be no exaggeration to say that in North America, Sudbury was among the top few communities that were absolutely critical to the war effort.

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Sudbury Can Become a Global Centre for Mining Education – Stan Sudol

Stan Sudol - Executive Speech Writer and Mining ColumnistIn 2008, for the first time in human history, more than half of the global population will be living in cities. The planet is undergoing the largest wave of urban growth ever, spearheaded by the massive migration of Chinese farmers to their cities.

Access to mineral commodities is critical if this trend of urbanization and industrialization in China, India and much of the rest of the lesser developed nations are to continue. This is no ordinary boom-bust cycle. We have entered a “once-in-a-generation,” long-term commodity boom that will ensure that Sudbury remains prosperous for decades to come.

However, an explosive demand for skilled mining geologists and engineers to find and develop the future mineral deposits as well as keep the present ones running will be one of the most significant global challenges the mining industry faces. Especially since a large number of the current generation are close to retirement.

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PDAC-AFN Agreement Hopes to Encourage Mining Development and Alleviate Aboriginal Poverty – Stan Sudol

Excutive Speech Writer and Mining Columnist Stan SudolTwo weeks ago during Toronto’s annual mining convention, a Memorandum of Understanding (MOU) between the Assembly of First Nations (AFN) – Canada’s national organization for Aboriginal people – and the Prospectors and Developers Association of Canada (PDAC) – an industry lobby group – was signed.

In a prepared speech for the MOU, National Chief of the Assembly of First Nations, Phil Fontaine said, “Two months ago, I had the opportunity to travel to the Attawapiskat First Nation to visit the community and the new Victor Diamond Mine…I was very impressed with De Beers’ commitment to working closely with Attawapiskat. This kind of economic development is bringing hope to so many people who are desperate to provide for their families.”

Patricia Dillon, the previous President of the Prospectors and Developers Association of Canada, stated, “The deliberations and discussions leading up to the signing of this MOU have been undertaken with much goodwill on both sides. This historic document formalizes a relationship that has been flourishing for some time and lays a framework for the mineral industry to work cooperatively with First Nations and aboriginal communities.”

This agreement sends a tremendously strong message to governments and the environmental movement that Canada’s top Aboriginal leadership supports and wants to expand sustainable mining developments when proper consultation and economic agreements are implemented.

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Canada’s PDAC 2008 Convention – The Mining Boom Continues – Stan Sudol

Ontario Northern Development and Mines Minister Michael Gravelle and PDAC Mining Matters KidsThe annual Prospectors and Developers Association of Canada (PDAC) convention is the premier event in the global exploration and mining sector. The Toronto convention, which is always held in the first week of March, is expected to set another attendance record this year with about 20,000 visitors.

As I jump from presentation to event throughout this column I may sound like I have a severe case of “attention deficit disorder. This only reflects the many stories, people, lectures and events at the PDAC which just simply overloads the mind. Combine that with the networking, business deals, and the enormous amounts of partying and the frantic three and a half days can become a blur to any participant. Where to start?

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Interview with New PDAC President Jon G. Baird on Mining Challenges – Stan Sudol

Jon G. Baird - President of the Prospectors and Developers Association of CanadaThe Prospectors and Developers Association of Canada (PDAC) promotes the interests of the Canadian mineral exploration sector to ensure that there is an economically prosperous and competitive mining industry in Canada. A critical part of PDAC’s mandate is to encourage the highest standards of technical, environmental, safety and social practices of the industry both in Canada and internationally.

New Presidents for the Prospectors and Developers Association start their two-year mandates just following the organization’s convention held in Toronto, Canada in early March of each year.

Canadian-born President Jon G. Baird is an engineer who graduated in geophysics from the University of Toronto in 1964. He has a solid background in dealing with international business.

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Fraser Report – Global Rankings of Mining Jurisdictions – Stan Sudol

The conservative think-tank – the Fraser Institute – has released its annual Survey of Mining Companies, on the most attractive jurisdictions for mineral investment. This year’s top three are Quebec, Nevada and Finland.

The Policy Potential Index is a composite measurement of the effects of government mining policies on mineral exploration and development that include environmental regulations, taxation, infrastructure, political stability, uncertainty over native land claims, labour issues as well as geological attractiveness and the interpretation of existing regulations.

“Quebec has always been viewed in a good light by the mining industry, primarily due to its favourable geology,” said Fred McMahon, coordinator of the survey and the Institute’s Director of Trade and Globalization Studies.

“But Quebec’s government also provides a favourable policy environment to go along with strong mineral potential.

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The Annual PDAC Convention Begins on Sunday – Stan Sudol

The annual Prospectors and Developers Association of Canada (PDAC) convention starts this Sunday in Toronto, Canada. This year’s convention has shifted to the South Building of the Metro Toronto Convention Centre from the North Building to accommodate more exhibitors and a larger crowd. They are expecting to see close to 20,000 participants, a new record high like the price a many of the metals its members are searching for.

PDAC was first founded in 1932, early in the Great Depression in order to fight some new provincial government regulation that was detrimental for struggling prospectors. Copper was then selling at four cents a pound (US), nickel was about 35 cents per pound, and gold could be bought for $20.67 per ounce. How things change and how they stay the same.

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Dick DeStefano and the birth of SAMSSA – Stan Sudol (Part B)

Fuller Industrial PhotoSudbury Mining Supply and Service Industry is Enormous

More money is spent within a 500-kilometer radius of Sudbury on underground hard-rock mining supplies than anywhere else in Canada, the United States or Chile. In 2006, Inco alone spent over $400 million on local supplies and services. That figure will only grow with the announcement to bring the Totten Mine into production as well as the Creighton Deep and Copper Cliff Deep projects. Xstrata Nickel is building Nickel Rim South, while FNX Mining will be bringing the Podolsky mine into production in 2008, just to mention a few other initiatives.

One of the main aspects of SAMSSA is the global nature of the organization. During its first year, DeStefano made contacts with 125 embassies focusing on their trade commissioners and government agencies who might have been interested in partnerships or distributorships.

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Dick DeStefano and the Birth of SAMSSA – Stan Sudol (Part A)

SAMSSA Members in Antofagasta, Chile (2004); Dick DeStefano, SAMSSA; Andre Ruest, B&D Manufacturing; Norbert Hoffman, Novenco; Ivania Misetic, Chilean Economic Development AgencyWhile southern Ontario manufacturing and auto industries are under severe economic stress due to the high dollar, competition from China and a U.S. recession, Sudbury’s cluster of mining supply and service (MS&S) companies are growing, exporting their products and technical expertise around the world.

Due to their success and economic clout, the local mining suppliers formed an industry association in 2003 called the Sudbury Area Mining Supply Services Association (SAMSSA) that also has members from North Bay and Timmins. The three communities supply about 35% of mining supply and services in Canada – the second largest concentration in the country.

SAMSSA Executive Director Dick DeStefano says, “Unfortunately, the Sudbury cluster has not been recognized by the provincial government as an important manufacturing centre. In the last three years the local cluster, including North Bay and Timmins have been exporting their products around the world, significantly increasing their revenues and regional employment.”

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