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Sudbury Basin

Union, company [KGHM] working together – by Carol Mulligan (Sudbury Star – January 11, 2013)

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

A joint team of three people each from KGHM and United Steelworkers Local 2020 is working to reduce the number of union members who will be laid off when Podolsky Mine ceases production March 29.

Poland-based KGHM posted a notice Wednesday at the mine, as required under the Employment Standards Act, that 70 hourly rated positions would be cut when the mine closes.

That doesn’t mean 70 union jobs will be lost, said Wess Dowsett, area co-ordinator and staff representative for USW.

Six jobs were saved Thursday when the committee met for the first time. It decided to retain at least half a dozen employees for a year and keep the mine located north of Capreol on care and maintenance.

“There is always the possibility the closure will be delayed again or it may reopen in the near future,” said Dowsett, so the company will maintain the mine so it can reopen in short order if need be.

The fact KGHM is putting Podolsky on care and maintenance gives the union hope it may return to production in the future.

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Cutting to one furnace at Copper Cliff – by Staff (Sudbury Northern Life – January 10, 2013)

http://www.northernlife.ca/

Citing volatile market conditions and cost challenges, Vale announced today that it plans to move to a single-furnace operation at its Copper Cliff smelter. The move will have immediate effects on the company’s $2-billion Clean Atmospheric Emissions Reduction (AER) project.

In mid-October, facing weaker metal prices, Vale undertook a comprehensive review of all its projects and operations. The first step, announced Oct. 18, was that operations at its Frood site of the Stobie Mine would be suspended as of the end of the year.

Although 85 jobs were affected by the decision, there were no layoffs. At the time, Vale said it remained committed to the Clean AER project, although it shifted the completion date from late 2015 to 2016.

The goal of the changes, said Base Metals CEO Peter Poppinga, was to “deliver a business model that is simpler, self-funding and self-sustaining.” The Base Metals division could no longer expect to rely on financing from Vale’s larger iron ore business, he said. By the end of this year, the division is expected to fund itself entirely.

Today’s statement said moving to a single furnace at Copper Cliff is the next logical step. Vale does not expect that to happen before the end of 2016.

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Vale Statement About Sudbury Clean AER Project – (January 10, 2013)

In the face of volatile market conditions and operating cost challenges affecting the broader mining sector, work began last year to reinvent the business model for Base Metals through a comprehensive review of all projects and operations. A wide range of opportunities are being explored to drive value in the business.

Changes in our asset footprint, such as the commissioning of our Long Harbour project in Newfoundland, together with decisions to optimize and redistribute the flow of raw materials, have made the move from a two-furnace operation to a single-furnace operation at our Copper Cliff Smelter the next logical step for the business. The current and future mine plans in Ontario do not support a two-furnace operation.

A move to a single furnace is years away, but preparation for this move will mean changes to the Clean AER Project in the immediate future. The outcome of this move to a single furnace, combined with adjustments to the Clean AER Project, will be reductions in annual SO2 emissions more than 50% greater than contemplated in the original Clean AER plan at approximately half the capital investment. This represents a significant investment of $1B in our Ontario operations while reducing sustaining capital requirements by $1B over the next two years.

We do expect that over the next several years there will be fewer jobs in the smelter complex with a change to a single furnace – but given the lead time we will look for ways to minimize any impacts.

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[KGHM Sudbury] Podolsky Mine closing – by Star Staff (Sudbury Star – January 10, 2013)

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

KGHM International Ltd. has begun issuing layoffs to about 70 people who work at Podolsky Mine located north of Capreol.

A company official said Wednesday the mine will close by the end of the first quarter of 2013. The company had originally planned to close the mine by the end of 2012. She said layoffs shouldn’t come as a surprise, since KGHM International Ltd. announced in November plans to shutter the mine.

“There is nothing left to mine,” she said. KGHM International and Steelworkers Local 2020 will now meet to discuss how the layoffs should be implemented.

Quadra FNX — which merged with Polish company KGHM Polska Mied S.A. in 2012 and now operates as a subsidiary, KGHM International Ltd. — began commercial production at Podolsky Mine of copper, nickel, gold, platinum and palladium in 2008.

In November, the company said despite exploration work, it could find no reserves at Podolsky. President and CEO Paul Blythe said then the company decided to focus on its more promising projects.

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14-ton rock killed Coleman miner: Report – by Carol Mulligan (Sudbury Star – January 9, 2013)

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

The Ministry of Labour has three weeks to complete its investigation into the Jan. 29, 2012, death of development miner Stephen Perry at Coleman Mine, and to determine if charges should be laid under Ontario’s Occupational Health and Safety Act.

A joint investigation by Perry’s union, United Steelworkers Local 6500, and Vale showed the 47-year-old miner died after a 14-ton piece of rock broke from the wall, or face, he was working on at the 4,215-foot level of the main ore body at the mine in Levack.

The investigation, which wrapped up last April but was not released publicly, produced 15 recommendations to avert similar tragedies from occurring. The investigation concluded Perry, who had 16 years’ experience, died while operating a piece of machinery to load explosives into holes in the face when the piece of loose rock broke free from the wall and crushed him.

The president of USW Local 6500, Rick Bertrand, said Perry did everything he was supposed to do while working in the area.

Bertrand hasn’t seen the results of the Labour ministry’s investigation, but said Tuesday he doesn’t expect the ministry will lay charges in Perry’s death. It has one year after a fatality to investigate and decide if it will lay charges.

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BMO bullish on Sudbury, Canadian economies – by Laura Stricker (Sudbury Star – December 11, 2012)

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

In the next 12 months, Canada will see changes in the housing market, commodity prices and a focus on the big story – household debt — the managing director and deputy chief economist of BMO Capital Markets says.

But Douglas Porter has other concerns. “By this point, Dec. 11, I thought we’d have a lot more clarity on at least one critical issue for the Canadian economy. I thought we’d have more information on the NHL lockout,” he joked.

On Tuesday, Porter spoke to about 100 people at the Greater Sudbury Chamber of Commerce luncheon about “Outlook 2013: looking beyond the cliff,” what the Bank of Montreal sees for the world’s major markets over the next 12 months.

Overall, Porter said, the outlook is positive. “If I were to speak to you just a little more than 12 months ago, the markets were actually in a fairly sour mood and we were worried about a downturn. But over the last year, the markets have swung much more to the optimistic end of the spectrum.”

The biggest risk for the global economy, he said, is still the European debt crisis. While great strides have been made on that front, there is still the possibility of a downturn.

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NEWS RELEASE: Northern Superior Resources Inc. Named [Quebec] 2012 Prospector of the Year

November 22, 2012 08:00 ET

www.nsuperior.com

SUDBURY, ONTARIO–(Marketwire – Nov. 22, 2012) – Northern Superior Resources Inc. (the “Company” or “Northern Superior”) (TSX VENTURE:SUP) is pleased to announce that it has been named the 2012 “Prospector of the Year” by the Association L’Exploration Miniére du Québec (AEMQ). According to its web site, “each year the AEMQ recognizes and honors the dynamism and entrepreneurship of companies and individuals involved in the development of Quebec’s mining and exploration industry.”

Specifically, the AEMQ “Prospector of the Year” award is presented to “highlight the importance of a new discovery that produced a significant ripple effect on exploration activities with regard to both the property itself and the surrounding area” and was awarded to Northern Superior in recognition of the importance of the Croteau Est Gold discovery in the Chapais, Chibougamau and Oujé-Bougoumou regions of Quebec.

Since commencing operations on the Croteau Est property in August of 2011, Northern Superior’s exploration programs have defined and continue to expand a gold-bearing alteration corridor that extends to at least 450 m depth, is at least 1,000 m in length and 50 to 150 m in width. The alteration corridor and associated gold mineralization (75.44 g/ t over 4.80 m; 8.16 g/ t over 19.55 m, as examples) remains open along strike in both directions and at depth (see press releases March 1, June 11, October 8, November 12, November 20, 2012).

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Group worried about metals in Sudbury soil – by Carol Mulligan (Sudbury Star – November 23, 2012)

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

A committee concerned about the health of Sudburians is calling on the government of Ontario to fill what it says is a gap in a study that looked at metals of concern in Sudbury’s air, water and soil.

Recommendations from the Sudbury Community Committee for Human and Environmental Health are the next logical step to the Sudbury Soils Study, says the committee and an environmental expert it commissioned to review the study.

The Sudbury Soils Study was a $15-million, eight-year study of the effects of a century of mining on the soil, air and water of the Sudbury Basin. The committee says the study didn’t consider an important factor relating to Sudburians’ health — the quality of the air inside their homes.

Scientific data collected for the study, conducted by the Sudbury Area Risk Assessment group, included indoor dust testing at 91 homes in five communities in Sudbury. That sampling showed, in many of those homes, levels of metals such as nickel and lead three to six times higher than concentrations those metals in soils in the areas.

The dust samples were collected in Falconbridge, Copper Cliff, Hanmer, Coniston and Sudbury Centre, some of which were dubbed hot spots because of smelting activities over the years.

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Boom bust cycle normal in mining industry [Jason Turnbull interviews mining analyst Stan Sudol] – CBC Radio Sudbury (November 1, 2012)

http://www.cbc.ca/pointsnorth/ Slumping nickel prices and a bit of slowdown on base metal prices have caused speculation that Vale is not interested in maintaining full operations in Sudbury. Points North’s Jason Turnbull interviews Toronto-base mining analyst Stan Sudol about the recent cutbacks by Vale at their Sudbury operations. Click here for the interview: http://www.cbc.ca/video/news/audioplayer.html?clipid=2299263418

Financing in place for Broken Hammer [Sudbury] project, says miner – by Star Staff (Sudbury Star – November 21, 2012)

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

Lively-based Wallbridge Mining Company Limited announced Tuesday it has secured financing to help develop its promising Broken Hammer Project, located north of Capreol.

The company said Callinan Royalties has agreed to provide Wallbridge with a line of credit for $2 million. In addition, Callinan will purchase 8,333,333 units of Wallbridge, at a price of $0.18 per unit, for gross proceeds of $1.5 million, subject to the approval of the Toronto Stock Exchange.

“We are pleased to have entered into this transaction with Callinan, a reputable royalty firm, for two reasons,” Marz Kord, president and CEO of Wallbridge, said in a release. “First, this new capital injection allows Wallbridge to accelerate the development plans for the Broken Hammer Project without significant equity dilution.

“Secondly, Callinan’s interest in financing the corporation at a premium to the current market in return for the option to purchase royalties on our 100%-owned Sudbury properties underscores the inherent value in these exploration assets, as well as broadening our already strong shareholder base.

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[Sudbury] Local likes [Glencore-Xstrata] mine deal – by Carol Mulligan (Sudbury Star – November 21, 2012)

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

The takeover of mining giant Xstrata Nickel by trader Glencore could be a good thing for Sudbury, says the president of the union representing 855 production and maintenance workers at Xstrata’s Sudbury operations.

The $31-billion takeover approved by Xstrata shareholders Tuesday could result in more investment in exploration and mine development, said Richard Paquin, president of Mine Mill Local 598/CAW.

The deal isn’t final, said Paquin, as it requires regulatory approval by several countries, including the European Union. But it is one step closer to a merger almost one year in the making.

Xstrata shareholders were expected to approve the takeover offer Tuesday and they did, but they surprised observers by failing to endorse a plan that would pay top Xstrata executives big money to remain with the merged company.

Those key executives won’t get that protection with this approval, said Paquin, adding that is not his and his union’s issue. Nor are Paquin and his union worried about being taken over by another foreign company.

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Planning should determine Vale’s request – by Brian MacLeod (Sudbury Star – November 17, 2012)

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

It is the city’s planning committee, not the labour board, that is considering whether to allow Vale to temporarily house workers on its properties, so committee members should consider the request with sound planning principles in mind.

And while the request is obviously not good planning, temporary exemptions to planning regulations are not uncommon. If the city’s planners feel this can be done safely, and it’s a necessary requirement, councillors should consider placing restrictions on how the housing is used, such as a time limit that would require the company to reapply for an exemption.

In June, Vale began work on a historic $2-billion Clean ARE project to retrofit and upgrade its smelter. The largest environmental project of its kind in Sudbury’s history is expected to reduce sulphur dioxide emissions at the Copper Cliff smelter by 70%, bringing emissions down to 45 kilotonnes per year, well below the regulatory limit of 66 kilotonnes per year.

It’s a project that’s of enormous benefit to the city, not just for the obvious environmental advantages, but that amount of money spent on materials and labour is a major boost to the economy. Up to 70% of the money may be spent locally. But since the city has, for years, had a low vacancy rate, Vale says it needs to be ready to house an influx of workers that could hit 1,300 at peak construction in 2014/15.

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No racism in mining firm’s actions with native band – by Peter Best (Opinion Letters) (Sudbury Star – November 24, 2012) Wednesday, November 14, 2012

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

Re: Miners racist, natives charge — Nov. 8.

This article was shockingly unfair and inaccurate towards Solid Gold Resources. Wahgoshig Chief Dave Babin says his band is taking a legal and principled position to defend their rights. That’s fine. But when Solid Gold takes a legal and principled position to defend their rights, he disgracefully accuses it of waging a “racist media campaign” against them, the better to shut down free speech on this important issue and avoid any critical inquiry of his and his band’s behaviour.

And Chief Babin’s assertion that the Ontario government is somehow supporting Solid Gold in this is false. The Ontario government allied itself with Wahgoshig in the original injunction proceeding, where it was Wahgoshig and the Ontario government on the one side, and little Solid Gold on the other (its shares are now trading at under three cents thanks to Wahgoshig and Ontario).

Solid Gold sought and was granted leave to appeal the injunction ruling. In its court filings, the Ontario government again supported Wahgoshig, arguing that it, and therefore its de facto delegatee, Solid Gold, had a duty to consult Wahgoshig, which Solid Gold failed to meet. Solid Gold argued, as was its right, that it didn’t have a duty to consult — that the 2004 Supreme Court judgment referred to in the article, (called Haida Nation), did not extend through the Crown to exploration companies like Solid Gold with already-existing rights under previously and validly staked claims.

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Union wary of Vale move – by Sebastien Perth (Sudbury Star – November 7, 2012)

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

Union leaders say they are suspicious of a move by Vale to house temporary workers dur ing construction of the company’s $2-billion pollution reduction project in Sudbury.

“I think its 90-10,90% towards the labour issue, 10% towards housing contract workers,” said Dennis Theriault, vice-president of Steelworkers Local 6500. “I think our community of 160,000 can handle an influx of 1,3001,800 workers, particularly when a great deal of those workers are supposed to be from our local community.”

Vale has applied to the city’s planning committee to amend a zoning bylaw to allow the company to house temporary workers working on its massive Clean AER project. Theriault, however, said the application is a charade to hide Vale’s real plans of housing replacement workers during a future labour dispute.

“I’m very disappointed and very concerned about this. The timing of the application reeks of an opportunity to house workers around the date of our contract ending. That would definitely have a huge impact on our bargaining position,” Theriault said.

The collective bargaining agreement between the USW and Vale expires May 31, 2015.

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[Sudbury] Vale exec [John Pollesel] ousted – – by Carol Mulligan (Sudbury Star – Novemeber 1, 2012)

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

Vale’s corporate spokesman denied 10 days ago that John Pollesel’s head was on the chopping block. But then, on Wednesday, the company confirmed the role of the Sudbury-born director of Vale’s Base Metals North Atlantic Operations was “no longer required.”

Vale spokesman Cory McPhee told The Star on Oct. 21 there was no truth to a widely circulating rumour that Pollesel was being cut by the company.

Wednesday, Vale’s Sudbury spokeswoman, Angie Robson, said base metals at Vale “is in the process of a business-wide review to address some significant short-term challenges.

“Part of that effort involves reshaping and restructuring the business to position ourselves for long-term success and sustainability,” she said.

Vale’s parent company, Vale SA, has said of late, it is determined to ensure all operations are self-sustaining, prompting decisions such as winding down production at the 100-year-old Frood Mine.

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