Reform revolt: [Northern Ontario] Opposition to Bill 151 grows – by Ron Grech (The Daily Press- April 13, 2011)

Ron Grech is a reporter for The Daily Press, the city of Timmins newspaper. Contact the writer at  rgrech@thedailypress.ca

During a week when the Ontario professional foresters are gathered in Timmins, the province is taking it on the chin over plans to reform forestry tenure.

Both the Federation of Northern Ontario Municipalities (FONOM) and the Nishnawbe Aski Nation (NAN) issued statements Wednesday condemning the government over Bill 151 — The Ontario Forest Tenure Modernization Act.

The day before that, Timmins-James Bay MPP Gilles Bisson challenged Northern Development, Mines and Forestry Minister Michael Gravelle over what the local MPP felt was a lack of consultation being conducted in Northern Ontario.

The government recently rejected calls for public consultation meetings in the North. Instead, it opted to hold two meetings — both of them in Toronto.

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EDITORIAL: Holding [Northern Ontario forestry] tenure hearings only in Toronto ludicrous, disrespectful – by Ron Grech (The Daily Press-April 5, 2011)

Ron Grech is a reporter for The Daily Press, the city of Timmins newspaper. Contact the writer at  
rgrech@thedailypress.ca

It is yet another show of disrespect and a slap in the face to Northern
residents. Is it any wonder that Northerners’ disdain for Queen’s Park
and the current provincial government is at a near-boiling point?
(Ron Grech-Daily Press, April 5, 2011)

After gaining the Ontario forest industries’ support on the prickly subject of tenure reform, the provincial government lost it again because of contentious wording in the draft legislation that passed second reading just over a month ago.

As it is currently worded, Bill 151 would empower the government to revoke a wood allocation if “the party holding the agreement, licence or commitment is not optimally using the forest resources.”

The industry is concerned that allocating forestry licences based on subjective interpretations of optimal or preferred use opens the door to political pressure.

Nonetheless, Ontario Liberal government seems intent on not only shooting itself in the foot, but severing it off altogether.

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Ramblings of alarmist activists fall on deaf ears here in North [Ontario] – by Ron Grech (Timmins-The Daily Press-March 25, 2011)

Ron Grech is a reporter for The Daily Press, the city of Timmins newspaper. Contact the writer at  
rgrech@thedailypress.ca

What we see again is an alarmist message from special interest groups aimed at
justifying extreme measures that will impact the lives and livelihood of people in
Northern Ontario. Northerners have a natural inclination to bond and care for the
health of their surroundings. Why else would they choose to live here and raise their
families here? (Ron Grech – March 25, 2011)

With the Darlington public hearings beginning last week, activists were provided an opportunity to push their agenda thanks to an earthquake and tsunami setting off a nuclear crisis in Japan.

Proponents for refurbishing of the nuclear facility pointed out the two circumstances are very different. The fact is half of Ontario’s power comes from nuclear plants and they have operated for more than 30 years without incident. The province does not sit on a fault line, so facilities here do not encounter immense earthquakes and tsunamis the way they do in Japan.

But that type of reasoning washes over the public when people are captivated by a disaster and uneasy about bringing it close to home.

Northerners can’t help but watch this discussion in southern Ontario without being mindful of how they have been affected by knee-jerk alarmism and governments swayed by public pressure and half-truths.

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Nishnawbe Aski Nation (NAN) Chief’s gather in Timmins to discuss resources – by Kate McLaren (The Daily Press, March 24, 2011)

Kate McLaren is a reporter for The Daily Press, the city of Timmins newspaper. Contact the writer at news@thedailypress.ca.

“The government has a responsibility to protect First Nations people, and it’s their
duty to consult. That duty should not be given to the industries themselves, unless
it’s agreed upon through talks between First Nations people and government officials.” 
(Raymond Ferris – Ring of Fire co-ordinator for Matawa First Nation)

As First Nation chiefs from 49 Nishnawbe Aski Nation (NAN) communities gather this week for the 2011 Winter Chiefs Assembly, the theme of the conference — Our Land, Our Resources — reflects current frustrations in First Nations communities.

“The discussions are centred around resource development, as it applies to both the written and spirited intent of Treaty 9,” said NAN Grand Chief Stan Beardy. “A hundred years ago, we signed a treaty that gave us peaceful and shared land, and said we would share in any wealth generated from that land.”

The conference, which began on Tuesday and concludes Thursday, features various presentations. Beardy said one of the highlights was the discussion around proposed mining developments in the Far North.

“The focus is around the implementation of these various treaty rights. We’d like the government to be more respectful of those rights.”

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North [Ontario] disrespected by urban dictatorship – by Wayne Snider (The Daily Press, March 22, 2011)

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

“Show us [Northern Ontario] the respect we deserve. The urban dictatorship is destroying
the beautiful cultural mosaic that makes our country unique — and great.”
(Wayne Snider, March 22, 2011)

Recently, the Town of Cochrane sent a strongly worded letter to Natural Resources Minister Linda Jeffrey. The topic of discussion was the Ontario government’s plan to protect massive

amounts of land in the North — stretching from the Manitoba border to James Bay — from future resource development under the Endangered Species Act in a bid to re-establish the range of the woodland caribou.

In a nutshell, the town said it would not consider supporting the policy unless:

* Northern municipalities and First Nation communities are given the chance to provide “meaningful consultations” on the issue;

* A socio-economic assessment — overseen by the province and the Federation of Northern Ontario Mayors — is done to determine the impact of the legislation;

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Governments should fund railroad to Ontario’s Ring of Fire mining camp – by Stan Sudol

Temiskaming & Northern Ontario Railway at the turn of the last century

This column was published in the March 17, 2011 issue of Northern Life.

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

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

“In the next 25 years, demand for metals could meet or exceed what we have used
since the beginning of the industrial revolution. By way of illustration, China needs to
build three cities larger than Sydney or Toronto every year until 2030 to accommodate
rural to urban growth.” (John McGagh, Rio Tinto – Head of Innovation)

Commodity Super Cycle is Back

The commodity super cycle is back, and with a vengeance. China, India, Brazil, Indonesia and many other developing economies are continuing their rapid pace of industrialization and urbanization. In 2010, China overtook Japan to become the world’s second largest economy and surpassed the United States to become the biggest producer of cars.

During a recent speech in Calgary, Mark Carney, the Governor of the Bank of Canada remarked, “Commodity markets are in the midst of a supercycle. …Rapid urbanization underpins this growth. Since 1990, the number of people living in cities in China and India has risen by nearly 500 million, the equivalent of housing the entire population of Canada 15 times over. …Even though history teaches that all booms are finite, this one could go on for some time.”

At the annual economics conference in Davos, Switzerland, held last January – where the most respected world leaders in politics, economics and academia gather – the consensus was one of enormous global prosperity predicting that, “For only the third time since the Industrial Revolution, the world may be entering a long-term growth cycle that will lift all economies simultaneously…”

John McGagh, head of innovation, at Rio Tinto – the world’s third largest mining company – has said, “In the next 25 years, demand for metals could meet or exceed what we have used since the beginning of the industrial revolution. By way of illustration, China needs to build three cities larger than Sydney or Toronto every year until 2030 to accommodate rural to urban growth. This equates to the largest migration of population from rural to urban living in the history of mankind.”

The isolated Ring of Fire mining camp, located in the James Bay lowlands of Ontario’s far north, is one of the most exciting and possibly the richest new Canadian mineral discovery made in over a generation. It has been compared to both the Sudbury Basin and the Abitibi Greenstone belt, which includes Timmins, Kirkland Lake, Noranda and Val d’Or.

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Commentary on Mining Watch: Ring of Fire Report – by Stan Sudol

  

Map Courtsey KWG

Stan Sudol is a Toronto-based communications consultant who writes extensively about the mining industry. stan.sudol@republicofmining.com

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

“In the next 25 years, demand for metals could meet or exceed what we have used
since the beginning of the industrial revolution. By way of illustration, China needs to
build three cities larger than Sydney or Toronto every year until 2030 to accommodate
rural to urban growth. This equates to the largest migration of population from rural to
urban living in the history of mankind.” (John McGagh, Rio Tinto – Head of Innovation)

Mining Watch Reputation 

Mining Watch was established in 1999 in response to the actions of Canadian exploration companies operating in Latin America and other jurisdictions in the developing world.

As stated on their website, “MiningWatch Canada … addresses the urgent need for a co-ordinated public interest response to the threats to public health, water and air quality, fish and wildlife habitat and community interests posed by irresponsible mineral policies and practices in Canada and around the world.”

In contrast to many in the mining sector I find a few of Mining Watch’s criticism’s legitimate and they have worked cooperatively with the industry in Ontario. In 2008, Mining Watch in conjunction with the Ontario Mining Association supported the amendment of the Ontario Mining Act that enabled companies to voluntarly rehabilitation mine sites even thought they had no legal requirments to do so. 

Recently, Mining Watch has issued a report titled, “Economic analysis of the Ring of Fire chromite mining play”. It was written by former Sudbury resident and well-known social activist Joan Kuyek. While the report covers a wide range of topics, I would like to focus on some important issues that have been downplayed or omitted, primarily the current state of mining, geo-politics and a history of enormous wealth creation from the mineral sector due to government infrastructure support. 

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Hydro rates killing jobs – by Wayne Snider, The Daily Press (February 28, 2011)

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

“An independent Northern Ontario electricity authority would allow us to create
jobs in Northern Ontario, contribute to the economy of the North and at the end
of the day, it would be good for all of Ontario.” (Former NDP leader Howard Hampton)

OPINION: Northern municipal leaders seek provincial solution to industrial sized problem

Northern Ontario municipal representatives will deliver their wish list to the leaders of the three mainstream political parties this week during the Ontario Good Roads Convention.

It would be shocking if hydro rates were not on that list, given the fact that rising costs of the utility have played a major role in gutting industry across the North.

Hydro costs were one of the key contributors leading Xstrata Copper to close its smelting operations at the Kidd Creek Metallurgical Site. Instead, ore concentrate is now shipped to Quebec, where electricity is much cheaper. (With the move, the province also lost one of its largest customers in terms of power sales.)

Saw and paper mills have also been hit hard by soaring hydro costs. In Iroquois Falls, there is an atmosphere of dread created by the pending sale of AbitibiBowater’s hydro electric dams. The fear being that once the cheap source of power dries up, the company will walk away from the community.

One of the major players in the Ring of Fire project, Cliffs Natural Resources Inc., has publicly stated that hydro costs in Ontario are too prohibitive to make processing of the ore in-province attractive.

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Timmins: A Community Abuzz About Goldcorp’s Land Restoration Activities

This article is from Goldcorp’s new Corporate Social Responsibility in-house publication called Above Ground. (Fall/Winter 2010 issue)

Shania Twain’s hometown is a hive of activity as Goldcorp does a clean sweep – enriching habitat, raising honeybees and creating trails.

In the 100-year-old city of Timmins, Ontario (the “City with a Heart of Gold”), resides another centenarian – Goldcorp’s Porcupine Gold Mines (PGM). Since its discovery in 1910, PGM is North America’s longest continually operating gold mine – a testament to the mineral richness of this region.

Hence the allure to companies over the century – some digging in then ducking out, others going bankrupt and too many leaving unsafe lands behind. Over 20 abandoned mines blighted the PGM site for decades, until Goldcorp acquired the complex in 2006 and committed to resurrecting the lands as wildlife habitats, nature trails, green fields and even a new and improved sliding hill.

“We are not just here to take the resources and not give back,” says Dave Bucar, Strategic Development Manager for PGM. “In the past three years, we’ve spent upwards of $24 million just on reclamation of properties that we may never mine again… but it’s our duty to go in and clean these up.”

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Don McKinnon: quintessential prospector – Norm Tollinsky (September/2006)

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the September, 2006 issue.

For a guy who was supposed to end up in a ditch, Don McKinnon has done OK for himself. Northern Ontario’s most successful prospector, McKinnon began taking an interest in rocks while working in the bush as a woods superintendent for paper maker Kimberly-Clark.

He had an early taste of success in 1964, making more than $900,000 in a staking rush sparked by the discovery of the Kidd Creek copper-zinc deposit just east of Timmins. His real claim to fame, though, was his and partner John Larche’s key role in the discovery of gold at Hemlo on the North Shore of Lake Superior.

Born in Cochrane in 1929, McKinnon remembers having a talent for art and acting, but had no patience for sitting still. He and good friend Tim Horton co-starred in a school production of A Midsummer Night’s Dream, but both were, first and foremost, rink rats who played hockey every chance they had.

Tim ended up as an all-star defenceman for the Toronto Maple Leafs and the founder of the quintessentially Canadian coffee and donut chain.

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Viola MacMillan: From the Ground Up: An Autobiograpy (Afterword) – by Virginia Heffernan (Part 2 of 2)

Virginia Heffernan, principal of GeoPen Communications, is a science and business writer who specializes in writing about mineral and energy resources. She provides research and writing services to both corporate and government clients and is a regular contributor to publications such as Investment Executive, The Northern Miner and Canadian Consulting Engineer. www.geopen.com/

“From the Ground Up” is an autobiography of one of Canada’s most notable mining women Viola MacMillan, best known for her involvement in the infamous Windfall mining scandal of 1964. Although her autobiography presents her side of the controversial story some gaps and context were missing. Virginia Hefferernan’s thorough investigation cleared up many of those gaps and provided much needed context in the “Afterword” final chapter of the autobiography.

Afterword (March 2001)

The frenzy begins

“Some of the drillers started buying stock through their brokers, who would have told their other clients that if the drillers were buying, there must be something in the core. The market activity just blossomed from there, almost regardless of what the MacMillans did,” says Ford. Blossomed is an understatement. On Monday morning, Windfall shares opened at $1.10. Before the market closed at 3:30 PM, 1.57 million shares had changed hands and the price had reached $2. When rumours that the core contained 2.4% copper and 8% zinc surfaced later in the week, the trading accelerated and by the closing bell on July 10th, the price had doubled again to $4. “Such trading removed from the market any semblance of order and reduced it to a scene of uncontrollable speculative frenzy,” observed Justice Arthur Kelly, the judge who presided over the royal commission.

In the absence of any concrete information, the press and brokerage houses latched onto rumour. They became enthusiastic boosters of the Windfall play, fuelling even more optimism in the market. The Northern Miner congratulated the “Mining MacMillans” for taking an intelligent gamble on the Prosser claims and The New York Herald Tribune reported a “major base metal drill core.” Brokers added credence to the rumours by reporting them to investors as fact. “Frustrated by their efforts to get accurate information and feeling under compulsion to provide whatever information was available, (the brokers) gave out such reports as they were able to gather,” concluded Justice Kelly. Just like during the Bre-X mining scandal that was to hit three decades later, the  information mongers whose impartiality is so vital to the investing public were either unable or unwilling to see that the emperor was wearing no clothes.

Throughout this frenzy, the MacMillans kept their lips sealed save for two statements issued to the press on July 7th and again, under orders from the TSE, on July 15th. Both releases were equivocal, saying little more than that the first hole had been stopped at 530 feet, the core had not yet been sent for assay and drilling would continue. The second release read as follows:

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Viola MacMillan: From the Ground Up: An Autobiograpy (Afterword) – by Virginia Heffernan (Part 1 of 2)

Virginia Heffernan, principal of GeoPen Communications, is a science and business writer who specializes in writing about mineral and energy resources. She provides research and writing services to both corporate and government clients and is a regular contributor to publications such as Investment Executive, The Northern Miner and Canadian Consulting Engineer. www.geopen.com/

“From the Ground Up” is an autobiography of one of Canada’s most notable mining women, Viola MacMillan, best known for her involvement in the infamous Windfall mining scandal of 1964. Although her autobiography presents her side of the controversial story some gaps and context were missing. Virginia Hefferernan’s thorough investigation cleared up many of those gaps and provided much needed context in the “Afterword” final chapter of the autobiography.

Afterword (March 2001)

The name Viola MacMillan evokes one of two responses. Those who knew her personally describe a generous and dynamic professional who became the sacrificial lamb of a corrupt Bay Street. Those introduced to her by the press recall a scoundrel who swindled innocent investors out of their savings. Will the real Viola Rita MacMillan please stand up?

If MacMillan were alive today, she would readily rise and state her case, just as she did on the 1960s television program, “To Tell the Truth.” As her memoirs divulge, she was an aggressive personality who rose from humble beginnings to achieve success in the mining industry: Canada’s own Horatio Alger, some would say. Despite her tiny stature – she stood just five feet tall and weighed little more than 100 pounds – she fought her way to the top of a man’s world by sheer force of will and a refusal to take ‘no’ for an answer. “Anybody, regardless of sex or circumstance, can do anything they want to do. All you need is the guts to stick to things,” was her favourite response to queries about the secret of her success.

But she rarely spoke of what became known as the Windfall affair, a mining scandal in the 1960s that triggered a royal commission investigation, exposed weaknesses in the market regulatory system and shamed several high-ranking officials. Even MacMillan’s otherwise detailed autobiography gives scant attention to an event that not only rocked her world, but changed the dynamics of share trading in Canada forever. MacMillan carried a long list of accomplishments to her grave, but her name will always be synonymous with Windfall.

MacMillan and the mining industry were joined at the hip.

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Golden Hope For a Timmins, Ontario Wasteland – by Nick Stewart

Established in 1980, Northern Ontario Business  provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. This article was published in the January, 2011 issue.

Goldcorp Inc. is just months away from making a production decision to dig up the literal “heart of gold” a stone’s throw from downtown Timmins. 

The Vancouver-based producer is working fervently through the winter months to build a case for a series of open pit mines at the very centre of the historic mining community, potentially making Timmins a unique portrait of modern mining in Ontario.

The project will carve out a patch of land just south of Highway 101, the main drag along which most of the city’s major commercial activity is located. The 250-acre property is surrounded by a pharmacy, a fast food outlet, a hotel, the Shania Twain Centre, the Gold Mine Tour and residential suburbs on two sides. The downtown core is across the street to the west.

This large area is the site of the shuttered but still treacherous underground Hollinger Mine, closed in 1968. Its hundreds of miles of tunnels have plagued the community with sinkholes and subsidences, creating a restricted wasteland and resulting in millions in property damage.

By mining out the area, Goldcorp stands to not only tap into the abandoned riches beneath the soil, but also to later transform it into safe, usable land. Like the issues surrounding the property itself, the new mining project is rife with logistical challenges, not the least of which involves determining what was left in the ground following nearly a century of mining.

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Battle of the Canadian Gold Rushes: Klondike Versus Northern Ontario – by Stan Sudol

Stan Sudol is a Toronto-based communications consultant, who writes extensively about mining issues.(stan.sudol@republicofmining.com)

The Yukon Klondike

I have a small complaint about Canadian mining history or more importantly, our media coverage of past gold rushes. The Yukon Klondike gold rush of 1896-1899 seems to take all the glory – thanks to writers like Jack London, Robert W. Service and Canadian literary icon, Pierre Berton – while northern Ontario’s four globally significant gold/silver discoveries in the first half of the last century do not get the historical respect they deserve.

The initial Klondike discovery, on August 16, 1896, at a fish camp near the junction of the Yukon and Klondike rivers, is credited to George Carmack and his Tagish Indian brothers-in-law, Skookum Jim Mason and Dawson (Tagish) Charlie. Robert Henderson, a Nova Scotia prospector is credited as a cofounder, since it was on his advice that the discovery was made, however he made no money from the find.

At the height of the rush, Dawson City, the main staging town at the mouth of the Klondike River had a booming population of about 30,000 and was known as the most cosmopolitan city west of Winnipeg and north of Vancouver.  Due to its isolation, all the claims had been staked by the time most people finally arrived. Some of the most memorable photographs from the period show a thin line of thousands of people climbing the legendary Chilkoot Pass – the shortest but most difficult route to the goldfields – bringing the required year’s supply of food and living material.

Fortunes were made and lost in Dawson City’s “rip-roaring” frontier atmosphere where prostitutes were tolerated and nearly everyone was on the lookout for charlatans and con men. Many became rich just supplying services to the stampeders.  In total, about 12.5 million ounces of gold was produced during this short-lived rush that lasted for less than a decade.

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Thirty-Eight Years of Progress [Timmins History]– by Norman E. Green

A Brief History of the Porcupine District

Hollinger Consolidated Gold Mines Limited: Public Relations Section – Timmins (This document was published between 1947 and 1949.

More than two hundred years before gold was discovered in the Porcupine, a narrow winding trail made its way from Porcupine Lake to the Mattagami River. Indians and Trappers, carrying canoes and heavy packsacks on their backs, crossed this trail many times, intent only on reaching their destination at either end and continuing their journey.

Little did they realize that beneath their feet, in places close enough to be marked by their boots, lay unmeasured wealth, gold which has since played a prominent pat in all phases of the history of our country.

Following the discovery of silver at Cobalt, and the development of that area, interest in the possibility of similar deposits in the Porcupine district was aroused. In 1896, 1898, 1899, 1903, 1905, and 1906, parties of government surveyors working in the district were impressed by the nature of the country and the possibilities it offered. In 1908, Dr. W. A. Parks, of Toronto University, examined the district and in his report stated: “I regard the region south of Porcupine Lake as giving promise to the prospector.”

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