An advanced [mining] project moves forward [Northwestern Ontario] – Thunder Bay Chronicle-Journal (March 18, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

This is the seventh instalment of a multi-part series looking at the mining sector of Northwestern Ontario and the Ring of Fire.

Author Napoleon Hill, known for his writings on success, said that, “More gold has been mined from the thoughts of men than has been taken from the earth.”

While this may be true, a tremendous amount of gold has been mined out of the ground, but not without the thoughts and vision of the men and women who held firm in their commitment to stay the course of the long road from discovery to production.

Patience and persistence are essential virtues to anyone in the mining business. It can take years from the point of the initial period of exploration to construction of a producing mine. There are many challenges along the way and mining companies need to have a relentless but realistic optimism.

Osisko Mining Corp., the Montreal-based company founded in 1998 that is currently developing the Hammond Reef Gold Mine project 23 kilometres north of Atikokan, is one such company.

Osisko, whose motto professes a “fresh outlook on mining,” first became involved in the Atikokan project when it took over from junior mining company Brett Resources in 2010.

Read more


Canada aboriginal movement poses new threat to miners – by Julie Gordon and Allison Martell (Reuters Canada – March 17, 2013)

http://www.reuters.com/

(Reuters) – An aboriginal protest movement that’s often compared with Occupy Wall Street has the potential to disrupt mining projects across Canada, threatening to undermine the country’s coveted reputation for low-risk resource development.

Idle No More, a grass-roots movement with little centralized leadership, swept across Canada late last year with the help social media. Protesters blocked roads and rail lines, and staged big rallies in the country’s largest cities to press a sweeping human rights and economic development agenda.

Mining companies are also in the movement’s sights as aboriginal bands seek to renegotiate old agreements and seize more control over mining developments, whether they are on lands designated as native reserves or not.

“We’ve existed in this territory for millennia. We don’t have a land claim – it’s beyond that, actually. Our rights exist throughout all of our territories,” Arlen Dumas, chief of the Mathias Colomb Cree Nation, said about the northern Manitoba land where HudBay Minerals Inc, a Toronto-based mid-tier miner, is building its Lalor project.

Protesters cut off access to the gold-copper-zinc mine for several hours in early March, demanding talks with the company on an ownership stake in the C$794 million ($773.84 million) project, which has started limited production.

Read more


Thomas Mulcair’s anti-Keystone rhetoric based on ideological assumptions – by Michael Den Tandt (National Post – March 17, 2013)

The National Post is Canada’s second largest national paper.

Tom Mulcair got himself elected leader of the federal New Democratic Party on a promise he would bring hard-headed realism and a centrist political ethic to the job. He was to be, it was murmured at the time, the NDP’s Tony Blair.

As it turns out, there’s little indeed of Blair’s famous economic pragmatism in Mulcair. He talks the talk but, when push comes to shove, quacks like a duck. Currently, the NDP leader is tromping with big, gnarled feet all over the delicate buds of the Keystone XL pipeline. Criticism of his criticisms, while on a recent Washington D.C. trip, he dismisses as Conservative hypocrisy. All opposition leaders attack the governing party’s positions when travelling overseas!

Except, that Keystone and the issues tied to it are not just political baubles to be toyed with. These are fundamental, shared economic problems – the greatest Canadians now face. The Obama administration’s pending approval or rejection will affect us all from coast to coast to coast, for many years to come. And much of Mulcair’s rhetoric about Keystone is either poorly researched, half-true or spun-up by ideological assumptions that do not hold up for a second in the cold light of day.

First let’s address the idea that Alberta’s nefarious Big Oil oligarchs are foisting oilsands development on a reluctant Eastern Canada, whose citizens will only suffer as the resultant global warming turns James Bay into a gigantic hot tub. This is the putative value proposition: Albertans benefit economically from the oilsands, but the rest of us are harmed. Why should their interests subsume ours?

Read more


Kinder Morgan’s pipeline ambitions on West Coast raises oil tanker concerns – by Jeff Lewis(National Post – March 16, 2013)

The National Post is Canada’s second largest national paper.

VANCOUVER – An inky-blue dawn breaks across Burrard Inlet as the oil tanker British Beech glides into view.

On the bridge of the tugboat Raven, captain Don Westmoreland, 59, peers at a video monitor that registers the vessel’s bearing and speed. “That’s our ship right there,” he says. Two 2,500-horsepower engines barely gurgle as the Raven tethers to the tanker’s stern for the trip under Second Narrows Bridge.

The 230-metres long British Beech has arrived from Cherry Point, Wash. this morning. In 24 hours, it will slip silently back out past Stanley Park and downtown Vancouver loaded with 350,000 barrels of Alberta crude oil, bound for Long Beach, Calif.

The journey is as much a fixture of port traffic today as a sign of things to come. Roughly five tankers berth every month at Kinder Morgan Canada Inc.’s Westridge marine terminal in Burnaby, B.C., the terminus of the Trans Mountain pipeline. That number could climb to 30 per month, or 400 per year, if plans to more than double capacity on the Edmonton-to-Vancouver pipeline are approved, providing a potentially lucrative outlet for Alberta’s oil sands and raising concerns about Canada’s ability to handle a coastal oil spill.

“They’ve been shipping oil out of here for 50 years with not one incident,” said Mr. Westmoreland, whose employer, Seaspan Marine Corp., provides escort services to the vessels.

Read more


A ‘massive intrusion’: Promise and peril in Trans Mountain pipeline ambitions through B.C. mainland – by Jeff Lewis(National Post – March 16, 2013)

The National Post is Canada’s second largest national paper.

BURNABY, B.C. – Two suburban roads lay bare the promise and peril of a proposed $5.4-billion expansion to Kinder Morgan Canada Inc.’s Trans Mountain pipeline through the densely populated Lower Mainland.

At the corner of Schooner Street and United Boulevard in the Vancouver suburb of Coquitlam, a 24-inch pipeline cuts under the road, past a Starbucks and a Triple O’s burger franchise, before diving under the Fraser River.

In 2002, Kinder Morgan threaded a 1,300-metre section of the pipeline under the road after seismic tests revealed soil along the river bank, where the pipeline had earlier been moved to accommodate a Home Depot, was subject to “liquefaction,” which made it unstable.

It’s an example, said Greg Toth, senior director with the Trans Mountain expansion, of modern pipeline construction techniques in action. “You can thread [a length of pipeline] down a street, put a stake in the ground and come up within a metre of that stake,” he said in an interview at the company’s Calgary office.

A rupture five years later of a transfer line on the Trans Mountain system pierced by a contractor’s excavator — that sprayed 11 houses with a geyser of crude oil along Inlet Drive in nearby Burnaby — underscores the flipside of such precision.

Read more


Stealing from the pot: Book reveals escapades of [Timmins] gold highgrading – by Liz Cowan (Northern Ontario Business – March 2013)

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.

It wasn’t just the shareholders reaping the benefits of the gold mines in Tim¬mins several decades ago – highgraders were getting rich too. Kevin Vincent, a Timmins journalist and broadcaster, released the first of three volumes of Bootleg Gold, which recounts the untold stories of gold smuggling in the city and elsewhere around the world.

A chance encounter with a former Tim¬mins police officer in the 1980s sparked his interest in highgrading. After listening to Jack Atkinson’s tale of his involvement in bringing down the biggest gold smuggling operation in North America, Vincent was hooked.

“I asked Jack where all the books and movies and documentaries were on gold smuggling and he said there was nothing. That’s when I started doing research and it was much bigger than I imagined on a global scale. None of it has been held out as this major crime enterprise,” he said.

Vincent’s first volume recounts the stories of some of Timmins’ highgrading capers, including the 1938 Dome Mine robbery, along with some escapades from other places.

“I didn’t ‘out’ anyone in the book and it wasn’t my intention to do that,” Vincent said. “If I outed one prominent businessperson, I would have to out everyone in Timmins.

Read more


Anglo CEO’s plan to reignite mining – by Rob Rose (South Africa – Business Day – March 17, 2013)

http://www.bdlive.co.za/

MARK Cutifani, who will step into the CEO’s seat at Anglo American in the next few weeks, said that, by confronting seven issues that spook foreign investors, South Africa’s mining industry can “turn the dial” and begin growing again.

Speaking at a dinner in Parktown, Johannesburg, on Thursday night, organised by the Chamber of Mines and attended by Mineral Resources Minister Susan Shabangu, Mr Cutifani said 2013 represents a “starting point for a new future for the mining industry”.

South Africa’s mining industry has flagged in recent years, battling a stream of bad news. This included the Marikana shootings last year and former ANC Youth League leader Julius Malema’s campaign for mines to be nationalised.

It meant that while the JSE’s all-share index climbed 60% from 2008 onwards, South Africa’s mining firms did not grow at all. Mr Cutifani pointed out that “in real terms, when you take into account inflation, that means we’ve destroyed about 30% value”.

Mr Cutifani, an Australian mining engineer, will take charge of Anglo American at its London head office. He has successfully led AngloGold Ashanti for the last six years. During that time, the company was the best-performing miner in terms of share-price growth and return on capital.

Read more


Questions for Liberals on gas plants – Toronto Sun Editorial (March 16, 2013)

http://www.torontosun.com/home

Among the many unanswered questions about the Liberals’ decision to cancel two natural gas plants leading up to the 2011 Ontario election, a key one involves Premier Kathleen Wynne.

Wynne, has described the Liberals’ decision to cancel the two unpopular projects in Oakville and Mississauga as a “political” one, meaning it was done to save a handful of Liberal seats in that election. Indeed, Wynne has been emphatic on this point.

As she put it last month: “I have never said this wasn’t a political decision. It was a political decision.” Wynne has also said she wasn’t involved in any decisions or meetings to cancel the Oakville plant in 2010, or the Mississauga plant just two weeks before the Oct. 6, 2011 election, in which she served as the Liberals’ campaign co-chair.

“I was part of the campaign team, but I was not in any of those meetings,” Wynne said.

Given all that, our question is, how is it possible that the Liberals’ campaign co-chair wasn’t involved in a political decision two weeks before the 2011 election to cancel the Mississauga plant, in order to save the political hides of some Liberal MPPs?

Read more


Wasaya among companies examining airships for northern transportation – by Rick Garrick (Wawatay News – March 14, 2013)

http://wawataynews.ca/

As winter road seasons continue to become more unpredictable, a number of companies and governments are examining the possibility of transporting goods to remote communities by airships.

One of the companies involved in examining the use of hybrid airships for transport in northern Ontario is First Nations owned and operated Wasaya Airways.

“Our interest has always been to keep abreast of what is happening in the region so we are not left out,” said Wasaya Airways President and CEO Tom Morris.

Wasaya is working with a Toronto-based company, Solar Ship, to test a hybrid solar powered airship for use in supplying northern communities. “They’re not really balloons; it’s more like a solar ship,” Morris said about the hybrid airship being developed in Toronto.

Morris said the solar-powered emission-free airship could deliver materials and goods at a lower cost than other means of transport, but there are still a “lot of unknowns” about the project.

Read more


First Nations can’t do worse than Queen’s Park – by John R. Hunt (North Bay Nugget – March 15, 2013)

http://www.nugget.ca/

What is Bob Rae cooking up in the political kitchen? The experts in Ottawa may know. Ottawa knows everything but very little about Northern Ontario. What Rae is doing or reported to be doing will likely have a profound impact upon the North country.

I have found it very difficult to like him. When he was the NDP premier of Ontario he sent a pet hatchet man to my neck of the woods supposedly to save money. This socialist paragon closed the New Liskeard agricultural college, closed the Temiskaming Testing Laboratory in Cobalt and euthanized plans to locate 200 civil servants at Haileybury.

As first responder to the federal Liberals’ near death, he has applied expert political first aid. Soon he may make the Trudeau coronation almost respectable.

It is reported that at least one First Nations’ chief wants Rae to advise or consult on the best way for First Nations to get a decent piece of the pie when the Ring of Fire mining area is developed.

It is an outrageous thought but the native groups and Bob Rae may plan better than Ontario has in the past. I remember when Temagami had three sawmills and a copper mine nearby. Then came the Sherman mine at Temagami and its sister the Adams mine near Kirkland Lake. Now they have all gone.

Read more


Vale $15 Billion Tax Verdict Seen Fueling Gain: Corporate Brazil – by Juan Pablo Spinetto, Raymond Colitt & Ney Hayashi (Bloomberg.com – March 15, 2013)

http://www.bloomberg.com/

Vale SA (VALE5) investors stand to benefit as a decade-long court battle over $15 billion in back taxes that’s been weighing on the miner’s stock nears an end.

The Supreme Court is set to rule by June on a similar case brought by Coamo Agroindustrial Cooperativa, a farming group from the southern state of Parana that’s suing tax authorities to avoid levies on profits from foreign units. A ruling in favor of the group would be in line with the legislation of most other countries, according to Peixoto & Cury Advogados, a legal firm that specializes in corporate law, including tax issues.

The case is being watched as a benchmark for Brazil’s biggest exporters — from Vale to beermaker Cia. de Bebidas das Americas to steelmaker Gerdau SA (GGBR4) — who are fighting a combined $44 billion in tax claims. A win would be a boon for Vale because investors have already priced in much of the tax losses, said Empiricus Research’s Roberto Altenhofen.

“The market is overreacting a bit about the chances of Vale having to pay all the taxes that are being claimed,” the analyst at the Sao Paulo-based consulting firm said in a phone interview. “It’s almost impossible to predict the outcome of this trial, but what we can say is that Vale seems to be willing to negotiate with tax authorities so a deal can be reached. Vale may end up paying something, but not the full amount.”

Read more


Stepping stone: Aboriginal mining training program provides skill, confidence – by Ian Ross (Northern Ontario Business – March 2013)

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

An Aboriginal training program in northwestern Ontario is making strides to address a looming labour shortfall in the mining industry.

Optimism is peaking in the region that there will be a cluster of major mining camps developing over the next 10 years, but in the Thunder Bay area alone, the mining industry will require between 1,110 and 4,150 workers. Where those workers will come from is anyone’s guess.

One possible source for underground workers is from the Mining Essentials program being run through the Anishinabek Employment and Training Services (AETS) in Thunder Bay.

Mining Essentials is the only work readiness training program for Aboriginal people in Canada.  It was developed in concert with the Assembly of First Nations and the Mining Industry Human Resources Council (MiHR), with curriculum input from educators and industry.

“Mining Essentials is a stepping stone to get entry level jobs,” said John DeGiacomo, the proposal and partnership development officer with AETS.

Read more


Barrick gold shipment detained by Dominican Republic – by Reuters (Globe and Mail – March 14, 2013)

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., the world’s largest gold miner, said on Thursday that a shipment of gold from its Pueblo Viejo mine in the Dominican Republic had been detained by customs officials in the Caribbean nation.

The delay comes just weeks after Dominican President Danilo Medina demanded that the company renegotiate its operating contract for the rich gold mine and threatened to clamp a windfall tax on profits if the contract was not modified.

Toronto-based Barrick said in a statement it was investigating the cause of the delay and seeking confirmation that the shipment can resume. It gave no further details. Fernando Fernandez, director of customs in the Dominican Republic, said the shipment was halted because of a problem with documentation.

“When it is resolved, the shipment will go out,” he told reporters. Pueblo Viejo, one of world’s largest new gold projects, is jointly owned by Barrick and Canada’s second largest gold miner, Goldcorp Inc.

On Feb. 27, in a speech marking the 169th anniversary of the Dominican Republic’s independence, Mr. Medina said the terms of the contract with the two Canadian miners were unacceptable and demanded more benefits from the mine.

Read more


In conversation with Barrick CEO Jamie Sokalsky – (Beyond Borders – January 29, 2013)

Click Here For: Barrick Gold Beyond Borders

After serving as Barrick’s Chief Financial Officer for more than 13 years, Jamie Sokalsky was appointed President and CEO in June 2012. He quickly set the company on a new course that stresses disciplined capital allocation. At the same time, he has indicated Barrick remains steadfast in its commitment to corporate social responsibility (CSR) and sharing the benefits of mining with host communities. In a wide-ranging interview, Sokalsky talked about his new role and CSR at Barrick.

How are you enjoying your new role as CEO?

Very much. I’m proud to be the CEO of a company that’s an icon in Canada and a world leader in its industry. I’ve been with this company a long time and I know what great assets, people, and opportunities we have. Our goal is to set the bar in terms of responsible mining, where we consistently hit our financial targets while operating in a way that provides benefits to the communities where we operate. It’s exciting, and we have a great future head of us.

You have been with Barrick since its early days. In your view, is it the same company today?

I think the fundamental values of the company are very similar, even though we have grown and evolved and are a much more global company today. The ethics of the company — and the desire for people to conduct themselves with honesty and integrity — have always been there. I’d say the desire to do things the right way has been in Barrick’s DNA since the founding of the company by Peter Munk. Those fundamental core values remain the same.

Read more


Hindalco, Vedanta in race to buy Rio Tinto’s Iron Ore Company – by Dev Chatterjee (Business Standard – March 15, 2013)

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

Rio Tinto is selling the Canada-based company to reduce its debt

Mumbai – Two of India’s biggest conglomerates, Hindalco, owned by Aditya Birla Group and Vedanta of Anil Agarwal are in race to buy Rio Tinto’s Iron Ore Company based in Canada, bankers say. Apart from these two Indian conglomerates, metal companies from across the world are in the race to buy the company which is valued at close to $1.7 billion.

Bankers said both groups are interested in the company which has iron ore reserves in Canada and a railway line to transport the ore. At present initial talks are on, a banker said. In January, billionaire L N Mittal sold off his 15% stake in several iron ore mines to South Korea’s Posco for $1.1 billion. Rio Tinto has hired Credit Suisse and Canadian Imperial Bank to sell its 59% stake. Rio Tinto is selling the company to reduce its debt.

In an interview to this newspaper, Vedanta Chairman Anil Agarwal had said the group is actively looking at iron ore, oil and gas and coal reserves all over the world. “We want Sesa Sterlite to be as big as Rio Tinto and we will buy energy resources including coal and iron ore reserves wherever we get the right opportunities and valuation,” he had said. Agarwal had not hinted at any specific target but said they are open to all opportunities.

When contacted, a top official of Vedanta group said today they have not made any bid for Iron Ore Company. A Birla spokesperson refused to comment on “market speculation.”

Read more