Republic of Mining

[Ontario Chamber of Commerce] Business Group Gives Failing Grade on Development of Ontario’s Ring of Fire

March 10, 2015

Click here for the report: http://www.occ.ca/Publications/ReportCardonRingofFire.pdf

Little progress made on development of resource-rich region in Ontario’s Far North

TORONTO, March 10, 2015: A new report from the Ontario Chamber of Commerce finds that permit delays, an absence of infrastructure, and intergovernmental quarrelling have stalled development in Ontario’s Ring of Fire, the mineral resource-rich region in the province’s Far North.

The report, Where are we Now? A Report Card on the Ring of Fire, evaluates progress against seven key challenges to development in the region. It finds that it will be years before a first mine is opened in the region.

The provincial government receives a failing grade when it comes to clearing the regulatory logjam. Delays in issuing exploration permits and approving environmental assessments are preventing mining firms from breaking ground on their projects.

The federal government also earns a failing grade, as it has yet to demonstrate that the Ring of Fire is a national economic development priority. Ottawa has declined to match the provincial government’s commitment of $1 billion for the development of transportation infrastructure.

The report also rebukes the lack of transparency in the negotiations between the Government of Ontario and the Matawa-member First Nations, which will outline an approach for resource extraction in the First Nations’ traditional territories.

Little Italy in Copper Cliff, Ontario: a nice place for reminiscing – by MK Keown (A Thousand Points of Light – June 10, 2013)

March 10, 2015

http://marykkeown.com/

As soon as I turn the car onto Craig Street, it greets my nostrils. It is undeniable. It is pacifying. It is the aroma of rich, delicious homemade fare – spaghetti, roasted chicken, sausages and meatballs the size of golf balls – wafting from Copper Cliff’s Italian Club. The kitchen doors are open on this fiery July day, the scents intoxicating the street’s residents. My knees go weak. I have come to photograph Little Italy and this is my first stop. I fear I may not make it any further.

Josie Apolloni, 75, watches over the beehive of a kitchen. The head chef is a diminutive lady who can barely see over the tops of some of the massive cooking pots, but she keeps vigil beside the meatballs and homemade sauce.

“(The recipe) comes from my roots, from Italy, from Fano,” Apolloni says, pointing to her knee when I ask about Fano’s location. The recipe, which dates back to 1935, is a heavily-guarded secret and Apolloni will only disclose that she uses canola oil rather than lard, which is more traditional.

The day I visit, there are three cooks and about a dozen volunteers scurrying about in preparation for the lunch rush – the Club serves a weekly Friday buffet that brings in admirers from all corners of the city. There is a lot of laughter in this kitchen, with jokes being tossed back and forth like a ping-pong ball.

Ontario Chamber blames Ottawa for Ring of Fire delays – by Staff (Northern Ontario Business – March 10, 2015)

March 10, 2015

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.

Although the report cautions that the intent of the report was “not to point the finger,” the federal government was criticized for not committing funds for mining-related infrastructure.

The chamber lamented the current state of affairs which has seen the departure of Cliffs Natural Resources this past year, leaving the mineral camp without a major mining company capable of spending private capital on infrastructure.

But the chamber also points to other factors in the glacial pace of development including the absence of foundational agreements with First Nations and government permitting delays. The chamber also is calling for more transparency on the pace and progress made on the First Nations front.

Despite the province signing a framework agreement with the Matawa First Nations tribal group last spring, the chamber remarked it’s largely unknown to the general public if any further progress has been made beyond the signing ceremony.

Creating a climate of “openness” would ease the uncertainty which is hindering the ability of companies operating in the Ring of Fire to raise money.

Province renewing mineral development strategy – by Jonathan Migneault (Sudbury Northern Life – March 09, 2015)

March 10, 2015

http://www.northernlife.ca/

Ontario late to notice mining downturn, says prospectors association

The province’s decision to renew its mineral development strategy – first established in 2006 – comes at a time when the sectors is in a downturn, says the executive director of the Ontario Prospectors Association.

When the strategy was developed nine years ago, Ontario’s mining sector was on an upturn, but the timing for the renewed strategy will give the province a very different picture, said Garry Clark.

“They have to understand – and they are coming to grips with the fact – that the only way we stay as a vibrant mining province is to have lots of things in the pipeline coming up from prospectors and junior companies to look at and put into production,” he said.

While Ontario’s mining sector has been in a downturn for two years, Clark said the province has only taken notice over the last six months.

Their statistics, he said, are usually a year behind. In a discussion paper meant to inform the renewed mineral development strategy, the province admits “Ontario could face many challenges in the years ahead.”

Commentary: Aboriginal Peoples score 200 legal wins in Canada’s resources sector – by Bill Gallagher (Northern Miner – March 4, 2015)

March 10, 2015

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Pipelines, energy exports, fracking, clear-cuts, tailings ponds and access to resources are daily in the news as the industry faces pushback on traditional lands from natives who feel that their way of life is threatened. But what’s different now is that the tone of the dialogue is changing — and not necessarily for the better.

For example, here is a quote from Northern News of Gino Chitaroni, president of the Northern Prospectors Association, recently speaking in Kirkland Lake, Ont.: “We are now at a crossroads, where our whole industry and way of life is completely threatened … the empowerment of First Nations at the expense of the mining and exploration industry … this is a massive sleeper problem that nobody wants to talk about in the press, because those who do may be targeted for reprisals and branded bigots and racists.”

We’ve seen a lot of court-bashing in the Canadian media from think tanks, former politicos and a former media tycoon. But the fact is that the native legal winning streak has rolled out in a highly consistent fashion. Indeed, it’s the courts themselves that have promoted the need for constructive dialogue for over 15 years now, based on the poignant closing in Delgamuukw, wherein the Supreme Court admonished one and all by writing: “Let us face it: we are all here to stay.”

Unfortunately, resource-centric governments have continued to do their talking in the court, with devastating results. Because today, after amassing 200 legal wins (I’ve been keeping track), Aboriginal Peoples are well on their way to redrawing the map of Canada not only at the resource sector’s expense, but also at the expense of the national economy.

Ring of Fire mining project needs First Nations consent, Bob Rae says – by Jody Porter (CBC News Thunder Bay – March 10, 2015)

March 10, 2015

http://www.cbc.ca/news/canada/thunder-bay

Negotiator for Matawa First Nations says no community can be left behind in development

Moving ahead with the Ring of Fire will require not just consultation, but the consent of the First Nations nearest to the mining development area in northern Ontario, according to Bob Rae. Rae is the negotiator for the nine Matawa First Nations in their discussions with Ontario about the proposed mining project.

Last week the province and the federal government announced they would jointly fund a $785,000 study to look at the viability of a road that would connect four fly-in First Nations to the provincial highway at Pickle Lake, Ont. The route being studied would also provide an industrial corridor for a nickel mine planned by Noront Resources.

“This can’t be a process that is driven exclusively on the interests of one project or another,” Rae said. “It has to be seen as responding to a broader concern which is the isolation, the poverty, the real needs of these communities.”

To that end, Rae said, more than one road will be needed. First Nations envision a loop that begins near the provincial highway at Nakina, Ont. travels through Aroland and Marten Falls First Nations, connects with the route currently under study and ends at Pickle Lake, he said.

Waubetek’s plan to engage mining stakeholders – by Lindsay Kelly (Northern Ontario Business – March 3, 2015)

March 10, 2015

Waubetek Business Development Corporation has developed a new mining strategy designed to help stakeholders navigate the intricacies involved with resource development in Northeastern Ontario.

The three-year Aboriginal Mining Strategy for North-East Ontario outlines priorities in four strategic areas, including developing Aboriginal mining industry knowledge; building mining industry relations; engaging a skilled Aboriginal workforce; and promoting Aboriginal business and partnerships.

The steering committee behind the strategy, which includes representatives from First Nations, training organizations, mining research institutions and others, held its inaugural meeting in Sudbury on Feb. 6.

“This is an important strategy for Aboriginal people,” Martin Bayer, Waubetek’s chair, said in a news release. “As we are located in northeast Ontario, in the hub of significant mining activities, we believe it is important to provide the opportunities and tools to Aboriginal businesses in our region and open doors to the mining sector for our clients.”

New Ring of Fire report card gives Ottawa failing grade, urges immediate action – by Lisa Wright (Toronto Star – March 10, 2015)

March 10, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Exclusive: Ontario is still years away from building mines rich in chromite and other metals due to government stalling and red tape, yet there is a strong business case for moving ahead, says Ontario Chamber of Commerce.

Ontario’s Ring of Fire mineral belt is years away from being built despite an expected turnaround in metal prices and First Nations’ dire need for development of the far north, says the Ontario Chamber of Commerce.

“Despite its significant potential, we are no closer today than we were a year ago to realizing the benefits of the Ring of Fire,” says the new one-year report card obtained by The Star.

“After a year of delays, public and expert perception on the viability of the Ring of Fire as a sound economic investment has soured,” it says.

The site, 400 kilometres northeast of Thunder Bay, Ont., is estimated to have $60 billion of mineral value including base metals, platinum and palladium, along with North America’s largest deposit of chromite, which is used to make stainless steel.

Column: India coal output will gain, but not to heroic forecasts – by Clyde Russell (Reuters India – March 9, 2015)

March 9, 2015March 9, 2015

http://in.reuters.com/

NEW DELHI – (Reuters) – It’s easy to dismiss the government’s assertion that the country will be able to more than double coal production in the next five years. But that doesn’t answer the question of how close they will get.

India will produce 1.5 billion tonnes of coal by the end of this decade, Coal Secretary Anil Swarup told the Coaltrans India conference this week in New Delhi.

Swarup, the top coal bureaucrat, presented these numbers in a relaxed and confident manner, a stark contrast to previous government presentations at Coaltrans events, which have generally been cautious and fraught with defensive justifications of past disappointments.

He still has the problem that nobody believes that state-controlled behemoth Coal India (COAL.NS) will be able to double its output to 1 billion tonnes per annum within five years.

There is perhaps some more confidence that private miners will be able to ramp up their production to 500 million tonnes, but that comes with the caveat that the laborious process for mining approvals is streamlined.

NEWS RELEASE: SAMSSA: The growth of a Mature Mining Cluster in Northern Ontario – by Dick DeStefano (March 9, 2015)

May 4, 2015March 9, 2015

http://samssa.ca/

Dick DeStefano is the Executive Director of the Sudbury Area Mining Supply& Service Association (SAMSSA)

The following historical summary of the growth and establishment of a mining cluster in Northern Ontario is being released to major Domestic and International mining centres and trade commissioners in the next few months based on a number of requests and presentations forthcoming.

Our partners and growth is based on four partnerships pillars that creates a unique model of mining expertise in the global market and is being applauded by a number of mining leaders and agencies and institutions. All of those who participated in developing this enterprise should be proud of its accomplishments and results over the past 12 years .

Please feel free to forward our story to anyone who is not aware and use its content as you travel the globe pursuing business opportunities and support our members and partners.

SAMSSA: The growth of a Mature Mining Cluster in Northern Ontario

It is quite evident that the Northern Ontario Mining Cluster has developed as a “mature cluster” based on studies by major agencies and institutions who study this concept.

‘India poised to be world’s 3rd largest economy’ (Business Standard – March 9, 2015)

March 9, 2015

http://www.business-standard.com/

As India’s investment climate seems to be improving, the moment might not be far away for the country to emerge as the world’s third economy, says Jim O’Neill who is better known for coining the acronym BRIC.

“It is probably too early to say with certainty that India will soon take its place as the world’s third largest economy, behind China and the United States. But, given that India’s investment climate seems to be improving, that moment might not be too far away,” he said in a recent commentary posted on Project Syndicate website.

“By 2017, India could surpass Italy and Brazil to become the world’s seventh largest economy; by 2020, there is a reasonable chance that it will overtake France and the United Kingdom to become the fifth largest,” O’Neill, who was recently in India, said.

Way back in 2001, O’Neill, had coined the acronym BRIC — the grouping of Brazil, Russia, India and China — while mentioning about growth prospects in large emerging markets.

O’Neill, a former chairman of Goldman Sachs Asset Management, is now a Honorary Professor of Economics at Manchester University and Chairman of the Review on Antimicrobial Resistance, among other roles.

Platinum in Your Car Set to Shrink Shiny Stockpiles: Commodities – by Andre Janse Van Vuuren (Bloomberg News – March 5, 2015)

March 9, 2015

http://www.bloomberg.com/

(Bloomberg) — Shrinking platinum stockpiles, growing demand from carmakers and new uses being trotted out in the energy field are stoking producers’ expectations that prices of the metal are poised to rebound from a five-year low.

Production of the shiny metal, used for jewelry and in catalytic converters in cars, will fall short of consumption this year by about 500,000 ounces, according to a January estimate by Credit Suisse Group AG. That’s prompting industry leaders to debate how long it will take for buyers to use up reserves and start paying more for a less available product.

Platinum is “in its strongest position” in a decade, said Chris Griffith, chief executive officer of Johannesburg-based Anglo American Platinum Ltd., the industry’s largest producer. “The fundamentals are that demand is increasing.”

Griffith said he believes prices will begin trending upwards relatively soon. Meanwhile, Terence Goodlace, CEO of Impala Platinum Holdings Ltd., the second-biggest producer, sees increases further out, estimating it will be two to 2 1/2 years for excess supplies to be depleted, with prices starting to recover in the second half of next year.

“The above-ground stocks for us is still a very, very big thing,” Goodlace told reporters at a media round table.

Rick Rule: Gold price ‘could easily see $1,000’ – by Frik Els (Mining.com – March 6, 2015)

March 9, 2015

http://www.mining.com/

Gold on Friday plunged more than $30 an ounce after a better-than-expected US jobs report saw the dollar soar to multi-year highs.

In heavy trade of more than 20m ounces in New York, gold for delivery in April fell $32.33 an ounce or 2.7% from Thursday’s close hitting a low of $1,163.87 an ounce during one of the worst trading days in a year.

Gold is now at the lowest price since mid-November and more than $140 below its 2015 high struck January 22. Gold’s gains earlier this year were ascribed to safe haven buying amid currency turmoil, a slowing global economy, geopolitical concerns, the fallout of the collapse in oil prices and a debt crisis in the eurozone.

But with the first hike in more than six years likely at the Fed’s June meeting raising the opportunity costs of holding gold, traders refocused their attention on fundamental factors.

Gold reacts counter to confidence and it would appear that there is a lot of confidence in the market. Higher rates also boost the value of the dollar which on Friday hit fresh 12-year highs against the currencies of major US trading partners. The greenback has strengthened by more than 20% over the last year.