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Province pledges $1 billion for Ring of Fire – by Carol Mulligan (Sudbury Star – April 29, 2014)

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

The Government of Ontario is ready to come to the table with up to $1 billion for industrial and community transportation infrastructure for the Ring of Fire, and it wants the federal government to do the same for a project it says is of national significance.

But the Liberal government of Premier Kathleen Wynne is committed to the $60-billion, multi-generation mining project whether its federal counterpart gets involved or not, says Northern Development and Mines Minister Michael Gravelle.

Gravelle called development of the chromite deposits 540 kilometres northeast of Thunder Bay the next great mining development in Canada, at a news conference in Thunder Bay on Monday morning.

Once tapped, the Ring of Fire will create thousands of jobs and make an enormous difference in the social fabric of the people of that area of the province, he said.

The provincial investment in the Ring of Fire, announced three days before the Liberals deliver their spring budget, is “absolutely a commitment we expect to be matched by the federal government,” Gravelle said in his home riding.

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Statement by NDP Northern Development and Mines Critic on Ring of Fire announcement: Michael Mantha

April 28, 2014

THUNDER BAY – NDP Northern Development and Mines Critic Michael Mantha, MPP for Algoma-Manitoulin, released the following statement in response to today’s announcement about the Ring of Fire.

“An economic opportunity the size of the Ring of Fire requires strong action and planning from government, not inaction and broken promises. Northerners have seen Liberals make grand announcements before and then seen those same plans fall through.

“The Liberal government has had over five years to come to the table, with not only funding for infrastructure, but a real plan for the Ring of Fire that benefits First Nations and Northern communities, creates jobs, and tackles infrastructure and the high price of electricity. But instead of a plan that could create an estimated 5,500 jobs annually, this government stood by as companies walked away from Ontario.

“More money for infrastructure in the Ring of Fire sure sounds like a good step forward but Northerners are tired of broken promises, and are worried this investment is coming too late.”

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NEWS RELEASE: LATEST LIBERAL PROMISE RINGS HOLLOW – Vic Fedeli

April 28, 2014

QUEEN’S PARK – Today’s pledge from the Wynne Liberals to invest in Ring of Fire infrastructure simply isn’t credible, Ontario PC Finance Critic and Nipissing MPP Vic Fedeli said today.

“The government has embarked over the past month on making 39 pre-election vote-buying announcements that would add at least $5.7 billion in new spending to an already ballooning debt and deficit,” Fedeli said.

“After six years of doing nothing to advance the Ring of Fire opportunity for Northerners, they’re now promising the moon without having put forward a concrete plan for developing the Ring of Fire,” stated Fedeli.

“It’s simply not believable.” Fedeli added that there is no timeline for development and no firm indication on the orientation of the transportation link.

“Again, there’s no mention of the ONTC in the Liberal announcement today. It’s very troubling especially when the Finance Minister recently told London that city’s rail expertise will be useful in the Ring of Fire.”

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NEWS RELEASE: KWG Applauds Development Corporation Plan

TORONTO, ONTARIO–(Marketwired – April 28, 2014) – KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) today announced: We are encouraged that Minister Gravelle has indicated: “The approach and priorities with respect to this investment will be established in partnership with First Nations, governments and industry partners through the development corporation.”

KWG is very supportive of the proposed Development Corporation. At the Minister’s request, we have met often with the Deloitte consultants engaged by the Minister, to discuss the many considerations attending the creation and financing of a Development Corporation. Some great Canadian infrastructure projects, such as Pearson International Airport, exemplify what can be achieved when an industry and those served by it are given governance of a public institution subject to the discipline of the financial markets. We feel this model would ideally serve the infrastructure requirements of the Ring of Fire and the many communities directly affected by such developments, whose consultation and participation is paramount.

About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.

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NEWS RELEASE: NORONT RESPONDS TO PROVINCE’S RING OF FIRE FUNDING ANNOUNCEMENT

TORONTO, ONTARIO–(Marketwired – April 28, 2014) – Noront Resources Ltd. (“Noront”) (TSX VENTURE:NOT) is pleased the Ontario government has proposed $1.0 billion in spending for infrastructure in the Ring of Fire.

“This commitment can provide the necessary funding for construction of a shared road and power corridor that will benefit remote First Nations communities and our Eagle’s Nest Mine, which will be the first mine developed in the Ring of Fire,” said Noront President & CEO Alan Coutts. “This infrastructure funding announcement is a vital milestone that will improve the quality of life in remote communities, while enabling development and prosperity in Northern Ontario.

“Mining and the associated job creation can’t happen without infrastructure, so we are pleased to see the province make a clear public commitment to funding a transportation corridor in the Ring of Fire. All-season road access, stable affordable power and the opportunity to participate in the economic development of the region will benefit local communities, resource companies and government.”

Noront recently completed a coordinated Federal/Provincial Environmental Impact Statement and Environmental Assessment Report (“EIS/EA”) for its Eagle’s Nest Project and submitted a draft copy for comments to the Canadian Environmental Assessment Agency (CEAA) and the Ontario Ministry of the Environment (MOE).

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Ontario offers $1bn to develop RoF infrastructure, looks to feds to match – by Henry Lazenby (MiningWeekly.com – April 28, 2014)

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – The provincial government of Ontario on Monday announced a massive $1-billion set aside in its new budget, which would be announced on Thursday, to develop strategic all-season industrial and community transportation infrastructure in the Ring of Fire (RoF), in Northern Ontario.

In making the webcast announcement in Thunder Bay, provincial Minister of Northern Development and Mines Michael Gravelle beseeched the federal government to match its contribution and throw its weight behind the development of what had been billed as a “project of national significance”.

“Our government is committed to making a significant investment to fund transportation infrastructure development in the RoF. We have made important progress over the past few months to bring partners and divergent interests together. Now we need the federal government to match this commitment so that we can move forward on realising the RoF’s potential and making important advancements on regional, environmental, and economic developments,” Gravelle said.

The Ontario provincial government and local First Nations last week Thursday celebrated the recent signing of a regional framework agreement to develop the RoF, a mineral-rich area in the northern muskeg-wastelands of Ontario.

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Mining industry support firms congregate here – by Tony Davis (Arizona Daily Star – April 27, 2014)

http://azstarnet.com/

A growing phalanx of companies in Tucson and Southern Arizona service the mining industry.

Amigos, a statewide industry support group, counts its Southern Arizona membership at about 250 to 300 businesses. They employ a total of 25,000 to 30,000 people, says Bob Humphrey, an Amigos board member. The business count has grown from about 150 in 2003, due mainly to the rise in global copper prices from about $1.30 per pound back then to a little over $3 today.

The companies include engineering firms, environmental consultants, industrial distributors, equipment manufacturers, metal fabricators, dealers of Caterpillar construction equipment, systems suppliers, temporary employee firms, construction service firms, structural concrete and steel suppliers, construction services firms, mine planning and evaluation firms and many more.

While individual companies cite many reasons for locating here, chief among them is the large copper mine presence in the region, including Freeport McMoRan Copper & Gold’s Sierrita Mine and Asarco’s Mission Mine south of Tucson; mines elsewhere in Arizona and in southern New Mexico; and a smelter in Hayden.

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Focus: Disclosure of mining payments a hot topic – by Charlotte Santry (Law Times – April 28, 2014)

http://www.lawtimesnews.com/index.php

Move to boost transparency could have negative consequences

Forcing energy companies to disclose payments to aboriginal communities could make treaty negotiations smoother and more transparent, lawyers believe. But some warn it could also encourage the federal government to slash funding for infrastructure and social services in those communities.

Former natural resources minister Joe Oliver told mining executives last month the federal government was upholding its commitment to ensure mining companies disclose payments made to governments at home and abroad.

The plans would cover payments of more than $100,000 made by oil, gas, and mining companies to all levels of government, including aboriginal communities. This would affect payments made by resource companies via legally binding impact benefit agreements. The agreements set out how a community will benefit from land used in operations such as mines.

Julie Abouchar, a partner at Toronto law firm Willms & Shier Environmental Lawyers LLP, says the proposals could benefit negotiations on impact benefit agreements. “A good process involves regular reporting to communities about the progress of negotiation and that the agreement be made available to community members to read before any agreement is ratified,” she says.

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Barrick Gold says Newmont Mining ends merger talks – by Rachelle Younglai (Globe and Mail – April 28, 2014)

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.

Barrick Gold Corp. said on Monday that Newmont Mining Corp. has decided to end their merger talks, a development that could lead Barrick to launch a hostile bid for its American rival.

The Toronto-based Barrick had been trying to renew talks with Colorado-headquartered Newmont last week, a source had said. But Newmont’s board of directors decided to “terminate” their discussions, Barrick said.

“Although Barrick believes the interests of shareholders are best served through the completion of this business combination, Newmont’s board has determined that the interests of Newmont’s shareholders are best served by remaining independent,” Barrick said in a statement. Newmont had no immediate comment.

The companies, the world’s two largest gold producers, have discussed merging at least two other times over the last two decades.

The rout in the gold industry led to their recent discussions, with the miners identifying about $1-billion in cost savings.

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COLUMN-Asian coal miners pursuing self-defeating output gains – by Clyde Russell (Reuters India – April 28, 2014)

http://in.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, April 28 (Reuters) – Coal producers in Asia are currently their own worst enemies, raising output in a bid to boost revenue in order to compensate for lower prices.

Economic logic would suggest that when the product you make is in oversupply, eventually prices will fall to the point where output becomes loss-making and is shut down. However, this logic isn’t applying to Asian coal markets, with miners ramping up output by more than demand is increasing.

The short-term impact has been that spot prices have tumbled, with benchmark Australian thermal coal at Newcastle Port dropping to $73.12 a tonne in the week to April 25. That is not far from a four-and-a-half-year low of $72.98 hit last month.

The price is also down 15 percent so far this year and has almost halved since the post-2008 recession peak of $136.30 a tonne, reached in January 2011. The response to this collapse in pricing has resulted in some production leaving the market, most notably in China and the United States.

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Election violence flares in South Africa’s platinum belt – by Ed Stoddard (Reuters U.K. – April 27, 2014)

http://uk.reuters.com/

JOHANNESBURG – (Reuters) – Police used water cannon and stun grenades to disperse rioters in South Africa’s strike-hit platinum belt on Sunday after a government minister was attacked by rock-throwing protesters while campaigning for the May 7 election.

Police spokesman Thulani Ngubane told Reuters a community hall, municipal centre and the house of a councillor for the ruling ANC were burnt down. He would not identify the rioters but local media and union leaders said the minister had been attacked by members of the striking AMCU miners’ union.

Ngubane confirmed sports minister Fikile Mbalula had to be whisked away under police protection after he and the ANC activists he was campaigning with were confronted by a crowd in the shanty town of Freedom Park northwest of Johannesburg.

It was after this that the protest erupted into a full-scale riot, Ngubane said. Sydwell Dokolwana, the regional secretary for the National Union of Mineworkers (NUM), a key ANC ally and AMCU’s arch rival, told Reuters he was with the minister at the time and that several people were hurt in the scuffle.

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News Release: Ontario Investing in the Ring of Fire


MNDM Press Conference April 28 2014 Minister Gravelle by netnewsledger 

Province Moving Forward with Support for Strategic Infrastructure

April 28, 2014 10:25 a.m. Ministry of Finance

The Ontario government is prepared to commit up to $1 billion to develop strategic all-season industrial and community transportation infrastructure in the Ring of Fire.

Ontario needs a partner and is calling on the Federal government to equally match this funding to build the infrastructure required for this important project in the north that will create jobs and boost the northern economy.

The approach and priorities with respect to this investment will be established in partnership with First Nations, governments and industry partners through the development corporation.

The province is currently facilitating the creation of a development corporation to accelerate strategic infrastructure development in the region. The corporation will bring together key mining companies, First Nations, and the provincial and federal governments to develop, construct, finance, operate and maintain infrastructure supporting access to strategic resources in the mineral rich Ring of Fire.

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Province providing $1 billion for Ring of Fire – by Lindsay Kelly (Northern Ontario Business – April 28, 2014)

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.

The Ontario government is providing $1 billion to develop transportation infrastructure in the Ring of Fire. Northern Development and Mines Minister Michael Gravelle made the announcement on April 28 in Thunder Bay with Bill Mauro, MPP for Thunder Bay-Atikokan, and David Orazietti, MPP for Sault Ste. Marie.

Gravelle said the province was committed to “make a very significant investment in transportation infrastructure,” but made it clear he expected the feds to pony up their share as well.

“That is absolutely a commitment we expect to be matched by the federal government,” he said. “We’re coming to table with our best offer and we need the prime minister and his team to join us there.”

Calling the Ring the “next great mining development, not just for Ontario, but across the entire country for Canada,” Gravelle said because the Ring is in a remote part of the province never before developed, infrastructure development would be a “complex undertaking.” He did not specify which transportation mode—road or rail—the government favours.

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Big-name lawyer takes on Ontario’s law society [Bre-X and Joe Groia] (MACLEAN’S Magazine – April 27, 2014)

http://www.macleans.ca/

Judges said that Joe Groia was “unprofessional” in his successful defense of Bre-X vice-president John Felderhof against fraud charges in the late 1990s

The Canadian Press – TORONTO – A prominent securities lawyer and the society that regulates the legal profession in Ontario are bound for court in the latest round of an epic battle started in the aftermath of the billion-dollar Bre-X mining fiasco in the late 1990s.

Closely watched by the legal profession, the contest pits Joe Groia, who successfully defended the only person charged in the history-making securities scandal, against the Law Society of Upper Canada.

“There have been few cases, if any, where the (society) has been so dogged and determined to maintain a position that was so damaging to the public and profession as a whole,” Groia argues in court documents.

How he behaved during the tumultuous Bre-X courtroom odyssey is what’s at issue. The society maintains Groia misbehaved to such an extent in defending Bre-X vice-president John Felderhof that he warranted a two-month suspension and ordered him to pay $247,000 in costs — reduced on initial appeal in March to one month and $200,000.

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At helm of Anglo American, consummate miner digs deep for savings – by Eric Reguly (Globe and Mail – April 26, 2014)

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.

LONDON — Mark Cutifani and I meet in the strangest places. My first encounter with the CEO of Anglo American, one of the world’s biggest mining companies, came last September at a Vatican mining conference in Rome. He and other mining bosses were learning how to inject a bit more of the Holy Spirit into their digging activities.

The second time was two months later at a gold mine in Chelopech, Bulgaria, of all places. The little mine wasn’t Anglo’s. It belonged to Toronto’s Dundee Precious Metals and Mr. Cutifani was there to learn how the Canadians had reduced costs by some 50 per cent through a range of technologies, such as novel underground WiFi and data networks. “This is where the innovations are, in the small mines,” he said at the time, decrying the lack of technology in Anglo’s own mines.

The third meeting came in March, at Anglo’s headquarters in London, near Trafalgar Square, at the heart of what used to be world’s greatest empire. The location is appropriate. Anglo American was founded in 1917 by Sir Ernest Oppenheimer with £1-million ($1.85-million) in capital from British and American sources (hence the name Anglo American). Like Britain, it would establish outposts around the world. From its foundation in South Africa – home to its vast gold, platinum and diamond operations – it would expand into base metals in Canada, coal and manganese in Australia and iron ore, ferronickel and copper in Latin America. At one point, Anglo was the world’s mightiest mining company.

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